TMI Blog2020 (12) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... demurrage charges paid to the non-resident shipping company on behalf of the assessee by Wilmar Trading Pvt. Ltd. Further, it is clearly clarified by the CBDT vide circular no. 723 dated 19th Sep., 1995 that as long as the ship in respect of which freight payment is made is owned or chartered by non-resident the provision of section 172 are applicable and the provision of section 195 or 194C cannot be involved. We are not inclined with the decision of the ld. CIT(A) as provision of section 195 of withholding of tax on freight payment to non-resident shipping companies is not applicable as the same are covered by section 172 of the ACT. Therefore, the appeal of the assessee is allowed. - ITA No. 2049/Ahd/2018 - - - Dated:- 11-9-2020 - A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s accordingly erred both in law and on the facts of the case in confirming the action of AO in treating the Appellant as assessee-in-default u/s. 201(1) of the Act for non-deduction of tax at source u/s. 195 of the Act. 3. The solitary issue in the grounds of appeal filed by the assessee against the decision of ld. CIT(A) in confirming the assessing officer's act on holding that the assessee is required to pay of ₹ 2,32,319/- being aggregate on sum deductible u/s. 195 r.w.s. 201(1) along with interest u/s. 201(1A) of the Act. 4. The fact in brief is that the case of the assessee was selected for verification of foreign remittance made by the assessee during the F.Y. 2015-16 pertaining to foreign remittance of ₹ 56,70 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o tax u/s. 172 of the Act by the shipping company, therefore, the assessee was treated to be in default for non-deduction of TDS u/s. 195 of the Act on the said payment. 5. Aggrieved assessee has filed appeal before the ld. CIT(A)(A). The ld. CIT(A) has dismissed the appeal of the assessee holding that the assessee was required to deduct tax as per provisions of section 195 of the Act, therefore, the AO was justified in treating the assessee as assessee in default u/s. 201 of the Act. 6. During the course of appellate proceedings, the ld. counsel has submitted paper book comprising copies of documents and detailed information furnished before the lower authorities. The ld. counsel has contended that as long as the ship is owned or cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome was liable to be brought under tax u/s. 172 of the Act. On perusal of the material on record, we find that during the year under consideration, the assessee has made reimbursement of ₹ 56,70,000/- to Wilmar Trading Pvt. Ltd. in respect of demurrage charges paid to shipping company on behalf of the assessee. During the course of assessment, the assessee has submitted all the documentary evidences in relation to the aforesaid reimbursement expenses i.e. demurrage contract, letter to bank for remittance to Wilmar Trading Pvt. Ltd., debit note, amount of remittance, debit note issued by the Wilmar Trading Pvt. Ltd., Form no. 15CA, Form No. 15CB, bank statement voucher, detail of remittance, Form A2 under FEMA and certificate from Wilm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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