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TMI Blog2015 (7) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... ns to handling of material at the time of unloading of the cargo, thus, does not fall within the definition of ‘rent’, as set out in Explanation 1 to section 194I. There is no live link and rational nexus with such an expenditure to the use of any land, building or plant. Such charges received by the foreign shipping line are integral part of there Revenue generation from the operations of the ships and accordingly, they are chargeable to tax as profits of the shipping business. The Ld. CIT(A) has further noted that the assessee has noted particulars of payments made to shipping lines and to their agents and has held that they are not in the nature of rent. Finding of the CIT(A) on this score is upheld. Regarding Container Freight Statio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) after discussing this issue in detail has held that such a payment does not entail deduction of TDS u/s 194I but u/s 194C. Further, on similar matters, the Tribunal has upheld the same reasoning that any such kind of charges a TDS are not liable to be deducted. Thus, the order of the CIT(A) is upheld and the grounds raised by the revenue are dismissed. - Decided in favour of assessee. - ITA No. : 1505/Mum/2013,ITA No. : 1506/Mum/2013,ITA No. : 1507/Mum/2013 - - - Dated:- 10-7-2015 - Shri G S Pannu and Shri Amit Shukla, JJ. For the Petitioner : Shri Pawan Kumar Beerla For the Respondent : Shri Dilip S Damle ORDER PER AMIT SHUKLA, J.M.: The aforesaid appeals have been filed by the Revenue against impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that the assessee was under no liability to deduct tax u/s 194I of Income Tax Act 1961 and deleting the non/short deduction under the head BPT Charges i.e., wharfage charges determined by the AO u/s.201 of the Act without appreciating the fact that the definition of rent stands amended with effect from 13.07.2006. Wharfage charges refers to accommodation for providing unloading, storage of goods etc., by Bombay Port Trust, the AO was correct in holding the assessee as assessee in default within the provisions of section 1941 in his order u/s 201(1)/201(1A) of the come Tax Act, 1961. iv) On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred by deleting the interest levied u/s. 201(1A) of the 1.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conducted against some of CHAs, which included assessee s premises also on 24.02.2011, in order to verify the compliance with the provisions of Chapter XVII-B of the Income-tax Act. In the course of survey, the AO noted that assessee has not deducted tax at source in respect of expenses incurred under the following heads: Terminal Handling charges; (a) Container Freight Station Charges; (b) Bombay Port Trust Charges; and (c) Crane/Forklift Charges 3. In response to the show cause notice as to why the assessee should not be treated as assessee in default for non-deduction of tax under section 194I, the assessee filed detailed submissions as to why the said provisions are not applicable. Regarding terminal handling charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee gets reimbursement of these expenses. However, the Ld. AO held that the assessee is liable to deduct TDS u/s 194I and accordingly treated the assessee in default u/s 201 and also levied the interest u/s 201(1)/201(1A). 5. Before the CIT(A), detailed submissions were made before him, which has been incorporated by the CIT(A) from pages 3 to 27 of the appellate order as to why the assessee was either not liable to deduct tax at source or deducted tax u/s 194C. The Ld. CIT(A) has discussed the issue in detail regarding each and every nature of payment, which has been dealt from pages 28 to 44 of the appellate order and allowed all the conditions raised by the assessee that such payment do not entail deduction of tax at source u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Explanation 1 to section 194I. There is no live link and rational nexus with such an expenditure to the use of any land, building or plant. Such charges received by the foreign shipping line are integral part of there Revenue generation from the operations of the ships and accordingly, they are chargeable to tax as profits of the shipping business. The Ld. CIT(A) has further noted that the assessee has noted particulars of payments made to shipping lines and to their agents and has held that they are not in the nature of rent. Accordingly, the finding of the CIT(A) on this score is upheld. 9. Regarding Container Freight Station charges, Bombay Port Trust charges, the Ld. CIT(A) has discussed the relevant provisions of Custom s Act and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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