2014 (7) TMI 418

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....a)(ia) of the Income Tax Act, 1961 (the Act) is in respect of freight and insurance charges paid to Shipping Companies. 3. The facts relating to the issue has stated in brief. The Assessee is a dealer in marbles, granites and the said business is carried on under the name and style of M/s Rajgiri Mamo. The Assessee imported marbles and granites from the various countries which were received through ships. In the process, the Assessee paid freight and insurance charges on the goods imported by it and claimed the same as deduction during the year under consideration. The Assessee incurred a sum of Rs. 29,45,405/- towards freight and insurance charges. The Assessee did not deduct tax at source from the above said payments and hence AO asked....

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....3 lakhs relating to the payments made to Indian companies. Aggrieved by the order of ld. CIT(A) both the parties are in appeal before us. 5. We have heard the rival contentions and perused the record. The Ld. D.R placed heavy reliance on the decision rendered by Hon'ble Bombay High Court in the case of Orient Goa Pvt Ltd. (supra) and submitted that the payments made to the Indian residents are not covered by the Circular of CBDT, referred supra. On the contrary, the ld A.R submitted that the decision in the case of Orient Goa Pvt Ltd was rendered in respect of demurrage charges paid and hence the same cannot applied to the facts of the instant case. The Ld A.R placed heavy reliance on the Circular of CBDT, referred supra. 6. A careful....