2007 (6) TMI 523

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h January, 2007 (Exh.F) issued by respondent No.3 and seeks declaration that payments towards voyage charter and time charter are not subject to deduction of tax at source under section 194-I of the Income Tax Act, 1961 ("Act" for short). 2. The petitioners are also contending that the respondents are not entitled to direct the petitioner No.1 association and its members to deduct tax at source (TDS) @ 22.4% under section 194-I, instead of normal rate of 2.244% under section 194-C of the Act as is presently being done in respect of payments made to third party under charter agreement entered into by them. 3. When this petition came up for hearing, we heard this petition for sometime. This Court during the course of hearing noticed tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at the highest authority under the provisions of the Act, namely; CBDT and one of its highest and responsible officer thereof, namely; Chairperson of the CBDT has decided the representation of petitioner No.1 flouting the directions issued in the order dated 24th April, 2007 passed by this Court. If it is the order of the Chairperson of CBDT, said to be in compliance with the order of this Court, then it is really unfortunate to notice the mode and manner in which the highest person of CBDT has dealt with the representation of petitioner No.1 which exhibits total gross callous and causal approach coupled with wilful disregard to the order of this Court. 7. If one runs through the decision dated 28th May, 2007, said to be a decision decid....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eared before the CBDT to counter the contentions raised by petitioner No.1- Association. The representation of petitioner No.1- Association has been decided in a most casual manner without assigning any reasons whatsoever, as such alleged decision can hardly be said to be a legal and valid decision. The mode and manner in which the compliance of the order of this Court is made, it has become necessary for us to bring it to the notice of the CBDT through this order one of the judgments of the Apex Court in the case of East India Commercial Co.Ltd. v. Collector of Customs, Calcutta, AIR 1962 SC 1893, which may serve as an eye-opener for them. 9. In the aforesaid backdrop, since the decision rendered by CBDT is not in accordance with the di....