2006 (9) TMI 546

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.... for not deducting tax at source on the Ocean Freight and IHC in terms of Item No.(c) of Explanation III to Section 194C of the Income Tax Act, 1961 (Act) which mandates that any person responsible for paying any sum to any 'resident' for 'carriage of goods and passengers by any mode of transport other than by railways' is liable to deduct tax at source. The assessee took the stand that the payments made were not amendable to tax deducted at source (TDS) in view of Circular No. 723 dated 19.9.1994 issued by the CBDT explaining the scope of Section 172 in the context of Section 194C of the Act. Section 172 deals with the mode of levy and recovery of tax in the case of a non-resident ship owner and the recovery of the tax in t....

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....g officer at the time of the survey itself. It was further held: ? In case the goods have been transported by a foreign shipping line, payments have obviously to be made to the foreign shipping lines or agents thereof. Even if payments have been made to sub-agents in some cases, these are passed on to the agents, who file return under Section 172 in respect of such payments on behalf of the shipping lines. The finding of CIT (Appeal) is that confirmations have been filed from all the agents for filing of returns under Section 172. Thus finding has not been controverted by the learned DR by producing any other material. 5. Before us, Ms. Prem Lata Bansal, the learned counsel for the Appellant, points out that the assessing officer had not....