TaxTMI 
TaxTMI 
2019 (1) TMI 259
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....erred in law as well as on fact in confirming deduction of tax at source u/s. 194-I on demurrage/detention charges paid to non-resident shipping companies which are assessed u/s.172 of the Act. 4) Hon. CIT(A) erred in law as well as on fact in confirming deduction of tax at source u/s. 194-I on demurrage/detention charges, which is not applicable to nonresident companies. 5) Hon. CIT(A) erred in law as well as on fact in remitting matter back to assessing officer." 3. The above grounds of appeal were recalled for fresh adjudication in pursuance to the direction issued by the ITAT in MA No.11/Rjt/2017 vide order dated 3rd August 2018. Therefore, we proceed to adjudicate the aforesaid grounds of appeal. 4. The only issue raised by th....
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....BDT bearing no.723 dated 19.09.1995. However, the AO disregarded the contention of the assessee and held that the payment made to the foreign shipping companies on account of demurrage charges are representing the rent. Therefore, the assessee was liable for deduction of TDS u/s 194-I of the Act. The AO in holding so relied on the judgment of Hon'ble Bombay High Court in the case of CIT vs. Orient (Goa) Pvt. Ltd. in Tax Appeal No.7/2005 dated 16.10.2009. In the view above, the AO treated the assessee in default u/s 201(1) of the Act and raised the demands of TDS for Rs. 27,00,497/- along with interest of Rs. 9,80,215/- aggregating to Rs. 36,80,712/- u/s 201(1) and 201(1A) of the Act. 7. Aggrieved, assessee preferred an appeal to ld. CIT(A....
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....ponsibility of the appellant to provide the necessary details to the AO in support of its contention. The AO will, in turn, decide the matter in light of the decision of the Hon'ble Supreme Court in case of Hindustan Coca Cola Beverage P. Ltd. (supra). This ground of appeal is thus partly allowed. Ground No.1: Learned AO erred in law as well as on fact in charging interest u/s 201A of the Act. 6. As regards calculation on interest u s.201(1A) it was contended by the appellant that since the payee has already filed the return of income and paid the tax on the same disclosing receipts from the appellant, the interest should. be calculated upto the dale on which the payee has filed his return of income. The AO has relied on the decisi....
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....ted below: "6. That is how the Revenue requested this Court to admit this appeal as it raises substantial questions of law. The appeal together with other Tax Appeals was placed before a Division Bench of this Court and it came to be admitted on the following substantial questions of law : (I) Whether in facts and circumstances of the case, the ITAT has erred in applying the provision of Section 172 in holding that section 40(a)(i) is not applicable, particularly when section 173 concerned with levy and recovery of tax in a case of any ship, as against section 195 r/w 40(a)(i) of the IT Act, refers to non-resident assessee as in the present case? ******** 7. Out of the above substantial questions, we are concerned with Question N....
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....l's order in that assessee's case. In other words, the Tribunal's view taken in the case of DGIT vs. Orient (Goa) was expressly rejected by this court was the submission of the Revenue. ********* 47. To our mind, the Division Bench judgment in Commissioner of Income-tax vs. Orient (Goa) Pvt. Ltd. seen in this light does not, with greatest respect, take into account the scheme and setting as understood above. There need not be apprehension because there is no escape from the levy and recovery of tax. The tax has to be levied and collected. The ship cannot leave the port or if allowed to leave any port in India, it must either pay or make arrangement to pay the tax. Hence, the apprehension of avoidance or evasion both are tak....
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....ections 93, 93 and 168, includes a person who is not ordinarily a resident within the meaning of clause (6)of section 6. The term "person" includes an individual, a HUF, a company, firm and every artificial juridical person not falling within any of the preceding sub-clauses of clause (31) of section 2. By section 2(23A), a foreign company is defined to mean a company which is not a domestic company. Hence, any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this Act not being income chargeable under the head "Salaries", would. have to deduct the tax thereon at the rates in the force. 50. The view that we are taking is based on....