2025 (10) TMI 957

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.... Act, 1961 for the Assessment Year 2016-2017. 2. The Petitioner has already suffered adverse orders in both in the hands of the Original Authority, the First Appellate Authority and the Tribunal and the matter is now subject matter of T.C.A.Nos. 117 and 118 of 2025. The Division Bench of this Court has already admitted the appeals vide its order dated 28.07.2025 and has framed the following substantial questions of law to be answered: - "(1) Whether freight charges received abroad by non-residents for goods shipped outside India but delivered in India is chargeable to tax in India? (2) Whether the Tribunal erred in holding that tax was deductible under Section 195 of the Income Tax Act, 1961 on freight paid to non-resid....

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....er Section 195 of the Income Tax Act, 1961, Petitioner was indeed required to pay tax. 4. Learned Senior Counsel for the Petitioner would endeavour to place reliance on the decision of the Punjab and Haryana High Court in the case of Commissioner of Income Tax, IT vs. Gurudaspur Cooperative Sugar Mills (P.) Ltd., rendered on 21.01.2024, wherein the Tribunal had set aside the penalty imposed on the said assessee under Section 271(1)(c) of the Act. 5. Learned Senior Counsel would also submit that appeal against the aforesaid order was dismissed, as the Government conceded taking note of the legal position and therefore, the pending applications, if any shall stand disposed of vide order dated 22.01.2024 in the case of Commissioner of In....

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.... appeal has been admitted in T.C.A.Nos.117 and 118 of 2025, either this proceeding can be kept in abeyance or in the alternative, the Petitioner can be relegated to work out an appellate remedy and all further recovery proceedings can be kept in abeyance pending disposal of the appeal in T.C.A.Nos. 117 and 118 of 2025. 10. In my view, the Petitioner should be asked to work out the remedy before the Appellate Commissioner. However, the recovery proceedings pursuant to the impugned order shall be kept in abeyance in view of the pendency of the appeal in T.C.A.Nos.117 and 118 of 2025 before this Court. At that stage, subject to final outcome of the aforesaid Tax Case Appeals, it is open for the Petitioner to argue the case as to whether the....