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TMI Blog2014 (4) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee is making payment to some Indian subsidiaries of foreign shipping company without deducting TDS under Section 194C of the Act. Held that:- Section 194C is applicable to the payment made by the assessee to the subsidiaries of foreign shipping and airline companies - CIT(A) misunderstood the order of the AO and recorded the finding that the AO has accepted the plea of the assessee that Section 194C is not applicable in the case of the appellant and only Section 172 is applicable - In the relied upon by the assessee, the assessee has furnished the confirmation from all the agents for filing of the return u/s 172 of the act - No such confirmations were produced – thus, the order fo the CIT(A) set aside and the matter is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se laws from which facts of the present case are squarely distinguishable. 5. The Revenue craves leave to add, alter or amend any of the grounds above at the time of hearings. 3. At the time of hearing before us, it is stated by the learned DR that the assessee company is an Indian arm of a multinational company Expeditors International. The assessee is engaged in the business of supplying chain management, logistics and freight forwarding which is related to movement of goods and cargo within India or outside India by road, rail, air or ship. During the course of survey at the assessee s premises, it is seen that the assessee is making payment to some Indian subsidiaries of foreign shipping company without deducting TDS under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... She also referred to Circular No.723 dated 19.09.1995 and Circular No.732 dated 20.12.1995 and stated that in the light of the above Circulars, Section 194C would not be applicable where the payment is made to the foreign shipping company or to their agent because provision of Section 172 would be applicable. She also relied upon the decision of Hon'ble Jurisdictional High Court in the case of CIT (TDS) Vs. Continental Carriers (P.) Ltd. [2007] 163 Taxman 479 (Delhi) and the decision of ITAT, Delhi Bench in the case of ITO Vs. Freight Systems (India) (P.) Ltd. [2006] 6 SOT 473 (Delhi). 5. We have carefully considered the arguments of both the sides and perused the material placed before us. Learned CIT(A) allowed the relief to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer has accepted the plea of the assessee that Section 194C is not applicable in the case of the assessee and only Section 172 is applicable. However, from a perusal of the order of the Assessing Officer, we find just the contrary finding having been recorded by him which would be evident from the following observations from the assessment order:- As per the section 172 taxation in the case of shipping companies is at the rate of 7.5% of the gross receipt. Since, there is a taxation at the presumptive rate in the case of such shipping company therefore the legislature has exempted the agent of such companies from the ambit of taxation. The agent of non-resident shipping company with subsidiary in India and which are not covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 194C. In support of this contention, she has relied upon the decision of Hon'ble Jurisdictional High Court in the case of Continental Carriers (P.) Ltd. (supra). In the said case, Hon'ble Jurisdictional High Court upheld the order of ITAT holding that no substantial question of law arises. The facts and the finding of the ITAT is recorded in paragraph 4 of the order which read as under:- 4. The department s appeal to the ITAT was dismissed. It was noticed that the assessee had submitted a list of shipping lines along with the names of the agents and corresponding bills of lading to the Assessing Officer at the time of the survey itself. It was further held : In case the goods have been transported by a foreign shipping l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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