2015 (12) TMI 97

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....rges paid to Mumbai Port Trust. 2. All the above three appeals involve a common issue as to whether the amount of berth hire charges paid by the assessee appellant to Mumbai Port Trust is subject to deduction of tax at source u/s 194C of Income Tax Act, 1961(in short 'the Act') as contract charges or under section 194I of the Act as 'rent'. 3. The stand of the assessee is that it is a partnership firm engaged in the business of shipping agency and it inter-alia, provides stevedoring and bulk cargo operations, clearing & forwarding, shipping logistics support services and project logistics amongst other services. It was noticed that assessee made payments on Mumbai Port Trust towards various charges including "berth hire charges" to wh....

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....e Act. In coming to such conclusion, the CIT(A) relied upon the decision of Delhi Tribunal in the case of Dy. CIT vs. Japan Airlines, 93 ITD 163(Del), which was also followed by the Chennai Bench of the Tribunal in the case of Singapore Airlines Ltd., vs. ITO (2006) 7 SOT 84 (Chennai). Therefore, whereas the assessee is in appeal for assessment year's 2008-09 and 2010-11, for assessment year 2009-10 the Revenue is in appeal on the singular Ground relating to the nature of payments made to Mumbai Port Trust on account of 'berth hire charges'. 5. Before us, the Ld. Representative for the assessee submitted that the decision of the Chennai Bench of the Tribunal in the case of Singapore Airlines Ltd. (supra), which has been relied upon by th....

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....he use of the land. On the contrary, the protocol prescribes a detailed methodology of fixing these charges. Chapter 4 of Airport Economics Manual issued by International Civil Aviation Organization deals with 'Determine the cost basis for charging purposes'. The charges on air-traffic which includes Landing Charges, Lighting Charges, Approach and Aerodrome Control Charges, Aircraft Parking Charges, Aerobridge Charges, Hangar Charges, Passenger Service Charges, Cargo Charges etc. are to be fixed applying the formulae stated therein. A reading thereof would clearly point out the cost analysis which is to be done for fixing these charges. Thus, when the airlines pay for these charges, treating such charges as charges for 'use of l....

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.... berth hire charges. In this context, Ld. Representative for the assessee has referred to the following assertions made before the CIT(A):- "1. Berth hire charges are fixed and realized according to the provisions under section 48 and 49 of Major Port Trusts Act, 1963. This is a charge for shipping of goods from or to such vessels to or from any dock berth or mooring. These charges are realized on the basis of per GRT of the vessel concerned. 2. The appellant submits that berth hire charges were nothing but port charges. The cost elements comprised in a composite berth hire charges as provided by the Mumbai Port Trust are as below:- Operational & Maintenance Mooring Launches deployed at Docks. Swing Gates & Bridges Capstan....