2006 (9) TMI 546

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..... ITAT have based their conclusions upon an appreciation of the evidence and held that in the facts and circumstances of the present case, the provisions of Section 194C of the Act are not attracted. We, accordingly, hold that no substantial question of law arises in this appeal - The appeal is, accordingly, dismissed.
MR. VIKRAMAJIT SEN & DR. S. MURALIDHAR JJ. For the Appellant: Ms. P.L. Bansal with Mr. Vishnu Sharma, Advocate For the Respondent: Dr. Narayanan with Mr. Viraj Datar and Ms. Namrata, Advocates ORDER 1. The Respondent/assessee is in the business of freight forwarding. During the course of a survey operation, it was found that the assessee has paid Ocean Freight and Inland Haulage Charges (IHC) for the financial year 200 .....

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..... had failed to deduct tax at source. The TDS liability on account of IHC and Ocean Freight together with interest thereon was assessed at ₹ 7,78,273/-. 3. In the appeal filed by the assessee, the Commissioner of Income Tax (CIT) (Appeals) by an order dated 24.9.2004 held that even where the agent was a resident, he received payments on behalf of the non-resident shippers. Further it was held that IHC was also covered under Section 172 (8) of the Act and as such the assessee could not be made liable for TDS on such payments. The appeals of the respondent/assessee were accordingly allowed. 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 nam .....

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..... agents thereof, all such payment are excluded and not taken into consideration for the purpose of working out the default of the assessee company in not deducting tax at source under Section 194C. 16.3 However, in certain cases, the assessee have not been able to furnish any evidence to establish the payments of Ocean freight are made to non resident shipping companies or the agents therefore, on such payments the assessee was liable to deduct tax at source as all such payees have received the Ocean freight charges in their own rights and not as the agent of Non resident shipping companies. 16.4 The assessee company vide it reply dated 21.11.2003, had filed partywise details of Ocean freight along with certain letters from the shipping .....

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