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PRI Commissioner of Income Tax-1 Versus Anchor Cargolines Pvt. Ltd.

2015 (9) TMI 808 - GUJARAT HIGH COURT

Disallowance u/s 40(a)(ia) - assessee has failed to bring any evidence of record that the payments made are covered under Circular No.723 of 1995 and that the non-residents ship owners/charters had filed returns u/s 172 of the Act - ITAT confirmed CIT(A) order deleleting part disallowance - Held that:- From the findings recorded by the Commissioner (Appeals), it is evident that he has thoroughly examined the facts of the case and has based his conclusions thereon veryfying all the copies of the .....

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es, the conclusions arrived at by the Tribunal being based upon concurrent findings of fact recorded by it, in the absence of any perversity therein, do not give rise to any question of law much less, a substantial question of law as proposed or otherwise. The appeal is, therefore, dismissed. - Decided against revenue. - Tax Appeal No. 569 of 2015 - Dated:- 8-9-2015 - Harsha Devani And A. G. Uraizee, JJ. For the Petitioner : Mr MR Bhatt, Sr Adv. with Mrs Mauna M Bhatt, Adv For the Respondent : N .....

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e Appellate Tribunal has substantially erred in law in upholding the decision of the CIT(A) in deleting the disallowance of ₹ 12685501/- out of total disallowance of ₹ 1,55,67,666/- made u/s 40(a)(ia) of the Act, especially when the assessee has failed to bring any evidence of record that the payments made are covered under Circular No.723 of 1995 and that the non-residents ship owners/charters had filed returns u/s 172 of the Act?" 2. The assessment year is 2005-2006. The Asses .....

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Being aggrieved by the dismissal of its appeal, revenue has preferred the present appeal. 3. Mr. M.R. Bhatt, senior advocate, learned counsel for the appellant assailed the impugned order by reiterating the findings recorded by the Assessing Officer. 4. This court has considered the submissions advanced by the learned counsel for the appellant and has perused the impugned order passed by the Tribunal as well as the orders passed by the lower authorities. 5. The Commissioner (Appeals) in the orde .....

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on the CBDT circular number 723 as per which any payment of ocean freight to foreign shipping lines or Indian agent of foreign shipping lines is not subject to TDS under section 194C or section 195 since these are subject to section 172 of IT act. Appellant also relied upon several decisions in which payment to agents of non-resident shipping companies were held to be not subject to TDS provisions. Therefore it is clear that wherever any person makes payment to non-resident shipping companies or .....

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TDS in these cases will result in disallowance. 2 - Any payment to non-resident shipping company will not require deduction of tax. Therefore Non-deduction of tax will not result in any disallowance. 3 - payment to Indian agent of non-resident shipping company will also not require deduction of tax at source and accordingly non-deduction will not result in any disallowance. The assessing officer, in the remand proceeding did not examine the issue from the available documents whether TDS was req .....

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l the payments were made to the agents of non-resident shipping companies. While signing the bill of lading, it is clearly mentioned that Indian company signed the same as an agent for and on behalf of non-resident shipping company. Therefore as per circular 723 and the decisions relied upon by the appellant, there was no requirement of deducing TDS under section 194C. Since TDS was not required to be deducted, there is no question of disallowance under section 40(a)(ia) of IT act. The details a .....

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hipping lines and not as agent of non-resident shipping company. This is very clear from the bill of lading signed by these companies. Accordingly any payment to these companies required deduction of TDS under section 194C since circular number 723 and the decisions relied upon by the appellant are not applicable. However in the case of shipping Corporation of India Ltd, appellant submitted no deduction certificate issued by DCIT. TDS by order dated 15-04-2004 for assessment year 2005-06. In vie .....

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