TMI Blog2022 (2) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... rter. The provisions of Section 172 of the Act has not at all indicated that there is any liability to pay tax on such receipts by the non-resident recipients. In this case, the charter ship for which payment was made to non-resident. As per the charging Section 172, no liability arises for payment of tax by the non- resident receiving payment for time charter. D.R. could not point out any discrepancy in the order of CIT(A). Therefore, the 1st issue raised in Revenue s ground no.1 is dismissed. Disallowance to weather routing report from the non residents and payment made to them - CIT(A) has given a categorical finding that income received by the non-resident for giving weather routing report in the form of analysis of data in tabular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income was ₹ 56,73,943/- which reduced to nil after claim of set off of brought forward losses of A.Ys. 1999-2000 and 2000-2001. The return of income was processed under Section 143(1) of the Income Tax Act, 1961 on 24.08.2006. Subsequently, the case was selected for scrutiny assessment and statutory notice under Section 143(2) of the Act was issued. In response to the statutory notice, the Ld. A.R. of the assessee attended the proceeding and furnished the details. The Assessing Officer observed that the assessee has shown turnover of ₹ 38,26,34,257/- and Net Profit of ₹ 83,89,524/- as per Companies Act. The assessee got its books of accounts audited as required under Section 44AB of the Act. The Assessing Officer furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. D.R. submitted that the CIT(A) erred in deleting the disallowance made under Section 40(a)(i) of the Act. The ld. D.R. further submitted that as regards weather report to a British Company, the same is in respect of voyage of ship taken on hire in Indian water and the payment properly made was liable to deduct tax at source. As regards to the second issue raised in ground no.1 of Revenue s appeal relating to weather report expenses of ₹ 15,583/- paid to non-residents , the ld. D.R. relied upon the order of Assessing officer. 6. The Ld. A.R. submitted that the assessee has no liability to make deduction of tax under Section 195 of the Act as the assessee made payment for time charter of ships to non residents, and when payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued by Department allowing the ship for sailing in Indian Port as the payment is for time charter. The provisions of Section 172 of the Act has not at all indicated that there is any liability to pay tax on such receipts by the non-resident recipients. In this case, the charter ship for which payment was made to non-resident. As per the charging Section 172, no liability arises for payment of tax by the non- resident receiving payment for time charter. The ld. D.R. could not point out any discrepancy in the order of CIT(A). Therefore, the 1st issue raised in Revenue s ground no.1 is dismissed. 8. As regards the second issue being disallowance of ₹ 15,583/- related to weather routing report from the non residents and payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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