TMI Blog2014 (7) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate obtained from M/s MSC Agency (India ) Pvt Ltd, wherein it is stated that the concern is the General Agents of MSC Mediterraneal Shipping Company - this certificate was not considered by both the tax authorities - the fact relating to the assessment of shipping companies to whom or on behalf of whom the charges were paid by the assessee were not brought on record - the issue requires fresh examination at the end of the AO – thus, the order of the CIT(A) is set aside and the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of revenue. - I.T.A. No.7232/Mum/2011, I.T.A. No.7767/Mum/2011 - - - Dated:- 25-6-2014 - Shri B. R. Baskaran (AM) And Sanjay Garg, (JM),JJ. For the Petitioner : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whose income is subjected to tax u/s 172 of the Act. The assessee submitted that he has made payments to either foreign shipping companies directly or to the agents of the foreign shipping companies. However, the AO placed reliance on the decision rendered by the Hon ble Bombay High Court in the case of CIT V/s Orient Goa Pvt.Ltd in Income Tax Appeal No.7/2005 dated 16.10.2009 and held that the assessee is liable to deduct tax at source on the payment cited above and accordingly he disallowed the same by invoking the provisions of section 40(a)(i) of the Act. 4. In the First Appellate proceedings, the ld. CIT(A) noticed that the Assessee has made payment to foreign shipping companies to the tune of ₹ 20.42 lakhs and the remaining b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our view, the assessee has to show that the shipping companies to whom payments were made are not only non-residents, but also he has to show they were assessed u/s 172 of the Act. Only if the assessee is able to prove the above facts, then he will be relieved of from the liability to deduct tax at source from the payments made to them towards freight and insurance charges. In this connection, we may state that the legal position will not change if the payments to the non-resident shipping companies are made through their Indian agents also. However, we notice that the Ld CIT(A) was carried away by the residential status of the agents and accordingly deleted the addition relating to the payments made to non-residents and confirmed the payme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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