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TMI Blog2016 (12) TMI 1752X X X X Extracts X X X X X X X X Extracts X X X X ..... t, which will in turn would help in determining the nature of liability under the Income tax Act. The nature of relationship could be determined by examining whole gamut of activities along with the agreements and other documents. A perusal of the orders passed by the tax authorities would show that they have not determined the nature of relationship/contract, as stated above. Hence the view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the demand raised by the AO u/s 201(1)/201(1A) of the Act. 2. The Ld A.R submitted that the assessee has provided manpower to various shipping companies as per the agreement entered between the assessee and shipping companies. He submitted that the assessee selects persons as per the requirement of shipping companies. He submitted that the appointment letter of the person is issued to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. He submitted that the payees are either not liable to pay income tax or they have already paid income tax by filing their respective return of income. Hence the assessee cannot be treated as an assessee in default under 3rd proviso to sec. 201 of the Act. Accordingly he submitted that the orders passed by the tax authorities are liable to be quashed. 3. On the contrary, the Ld D.R submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employees. 5. In our view, the nature of relationship between the assessee and shipping company, between the shipping company and seafarers and between the assessee and seafarers have to be determined first, which will in turn would help in determining the nature of liability under the Income tax Act. The nature of relationship could be determined by examining whole gamut of activities along w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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