9911796707
TMI Blog2011 (8) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... 6-6-2009 of CIT(A) XXXI, Mumbai with reference to assessment year 2004-05. 3. The common issue that has to be decided in these appeals is as to whether the CIT(A) was justified in treating the appellant as agent of various non-residents (17 non-residents) referred to in the orders of CIT(A) under section 163 of the Income-tax Act 1961 (the Act). 4. The facts giving rise to these appeals are as follows: The appellant is engaged in the business of Cargo Consolidation commonly known in the business as Non Vessel Owners Cargo Carriers (NVOCC). The appellant is registered as a Multimodal Transport Operator (MTO) with the Ministry of Shipping; Directorate General of Shipping, Govt. of India. The appellant receives cargo from various shippers/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant has a business associate in Singapore who turns around the cargo and routes the same to Sydney where the cargo is ultimately destined. For this services rendered in Singapore the said business associate raises an Invoice for on carriage from Singapore to Sydney. 3. As the appellant has collected the freight from Mumbai to Sydney, the cost of carriage i.e. Singapore to Sydney is remitted to the business associate in Singapore. 5. The Assessing Officer noticed that the appellant has made payment to the non-resident during the relevant assessment years under consideration on which no tax was deducted at source at the time of making payment. The Assessing Officer, therefore, issued a show-cause notice to appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants were not chargeable to tax under the Act in the hands of the non-residents. Therefore the appellant was not required to deduct tax at source in respect of remittances made to them. 6. The Assessing Officer did not accept the explanation of the appellant and he treated the assessee as Agent of Non-Resident. The A.O held that to treat a person as an agent under section 163, what is required is to prove that the representative assessee has business connection with the non-resident and from whom or through whom the non-resident is in receipt of any income, whether directly or indirectly. Both these facts have not been disputed by M/s. WSA Shipping (Bom.) (P.) Ltd. It has remitted the freight collected from Mumbai to the ultimate destina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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