TaxTMI 
TaxTMI 
2014 (4) TMI 275
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....le 46A with respect to acceptance of additional evidence. 2. At the outset the Ld DR narrated the facts of the case and submitted that assessee was required to deduct TDS from the payment of freight which he had not done and therefore the Assessing Officer has rightly made the addition. He further took us to page 9 of paper book and invited our attention to a letter dated 4.3.2005 and submitted that the letter itself states that it was not a certificate u/s 172 of the Income Tax Act, 1961 and therefore submitted that Ld CIT(A) has wrongly deleted the addition after relying on such certificate. As regards violation of rule 46A the Ld DR could not bring out anything before us for violation of Rule 46A. 3. The Ld AR, on the other hand, invit....
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....18/- was paid pursuant to contracts exceeding Rs.20,000/- each and therefore according to him the same was liable for tax deduction u/s 194C. The appellant submitted that the amount of freight and cartage was paid to shipping agent of non resident ship owner and the provisions of sec., 194C and 195 were not applicable to the payments made in its case. He further submitted that the income of the non resident shipping company was chargeable to tax under the provisions of sec. 172 of the IT Act, 1961. For the purpose reliance was also placed on Circular No.723 dated 19.9.1995 which has been issued by CBDT directing that no TDS is required to be deducted in terms of sec. 194C and 195 in the case of payment made to non resident shipping company ....
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....hat as the income of both the payees were not taxable in India, no TDS in terms of sec. 195 are required to be deducted from the payments of freight and cartage made to both the payees. The appellant has also produced a copy of the order u/s 195/197 before me from the Deputy Director of Income Tax, International Taxation, Circle-5 (1) , New Delhi in the case of Aeroflot Russia Airlines stating therein that all payments to that Air Line be made without any tax withholding. Similarly, the appellant has also filed a certificate from Assistant Director of Income Tax International Taxation, I, Kolkatta dated 4.3.2005 specifying therein that income of M/s HC Container Line(S) Pvt. Ltd. shall be taxable only in Singapore.. These certificates were....