2011 (12) TMI 104

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..... ing, trucking, tenderization, customs clearance and other cargo handling functions at both ends, besides moving the goods by air or sea, where goods cross the international borders. The assessee is providing such services to its clients worldwide in conjunction with its counterpart affiliates spread in more than 100 countries.   2. To undertake these activities, the assessee company has arrangement with its parent company which is a foreign company for rendering global management services and VSAT uplinking enabling it to have global communication network. In the assessment year 2004-05, with which we are concerned, the assessee had filed its return disclosing an income of Rs. 6,03,65,640/-. During the assessment proceedings, the asse .....

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..... before the High Court in the form of ITA Nos. 475/2009 and 751/2010 which were dismissed even by the High Court. Therefore, the Tribunal followed those orders and dismissed the appeal of the revenue even in respect of this assessment year. 3. The revenue has challenged the order of the Tribunal. Though it is accepted that earlier appeals of the revenue have been dismissed, present appeal is filed as orders of this Court dismissing the revenue's ITA Nos. 475/2009 and 751/2010 have been assailed by the revenue before the Supreme Court by filing SLP and since the matter is alive, in so far as revenue is concerned, that is the reason for preferring this appeal. 4. Mr. Sahni, learned counsel appearing for the revenue argued that what was paid .....

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..... ubt, the assessee should have taken recourse to the provisions of Section 195(2) or Section 197 of the Act. 5. The aforesaid contention of the appellant was refuted by Ms. Kapila, learned counsel appearing for the assessee submitting that core issue was as to whether nature of expenses is such that it attracts the provisions of TDS. Her submission was that the payment raised was towards reimbursement of the expenses incurred by the parent company, namely, global management expenses and other expenses. When such payment was not chargeable to tax at all, the collecting machinery provision, whether Section 194J or Section 195, would not get triggered. According to her, there must be component of income chargeable to tax and only then the ques .....

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