9911796707
TMI Blog2012 (2) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... s sums to different foreign shipping companies, totaling to `.5,33,26,726/-, on which no taxes were deducted. The AO, therefore, asked the assessee to explain as to how the said payments should not be disallowed u/s.40(a)(i) of the Act. The assessee submitted that payments had been made to the agents of foreign shipping companies, the income of which was not taxable in India and, therefore, no tax was required to be deducted in respect of such payments. The AO, however, did not accept the contentions raised. It was observed by him that under the provisions of section 195(2), if the person responsible for making any sum chargeable under the Act was of the opinion that whole of such sum was not taxable, in case of the recipient, he has to mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable. Accordingly, he directed the AO to delete the addition made. Aggrieved by the said decision, the Revenue is in appeal before the Tribunal. 3. Before us, the Ld. AR for the assessee reiterated the submissions made before the lower authorities that provision of section 195 were not applicable, as levy and recovery of tax relating to shipping companies was covered by the provisions of section 172. It was also submitted that the provisions of section 195(2) were applicable only in case where the person responsible for making payment had no doubt that tax was payable in respect of some part of the amount to be remitted, but was not sure as to the portion of the amount which was taxable as held by the Hon'ble Supreme Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said judgment is no longer a good law in view of the judgment of Hon'ble Supreme Court in the case of G. E. India Technology Centre (P) Ltd. (supra), in which it has been held that the provisions of section 195 can be applied only if there is no doubt that the payment is taxable in India and reference u/s.195(2) is required, only when there is no doubt about the taxability of amount in India and the doubt is only about the portion of the amount so taxable. In this case, the payments made to the agents of foreign shipping companies are claimed to be not taxable in India and there is no material produced before us to controvert the said claim. Even the AO had not disputed the claim of the assessee that the payments were not taxable. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
