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TMI Blog2015 (11) TMI 1765X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that the matter needs to be examined by the ACIT(TDS) afresh. ACIT(TDS) shall examine the contract entered between the assessee and the ship owners, which is the basis for making payment of charter hire charges. ACIT(TDS) on examination of the agreement/contract shall determine whether it is a case of contract of carrier coming within the ambit of sec. 194C or ‘hire’ simplictor and whether such hiring of ships come under the provisions of section 194-I of the Act. The ACIT(TDS) shall expeditiously dispose of the matter in accordance with law as indicated above after affording reasonable opportunity of being heard to the assessee - ITA No.302/Coch/2014, ITA Nos.400 & 401/Coch/2014 & CROSS OBJECTION No. 45 & 46/Coch/2014 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices. The assessee, in the course of its business, had taken certain ships on hire and had paid charter hire charges. For the AY 2007-08 the assessee had made total payment of ₹ 12,61,18,420/- as charter hire charges. Similarly for the AY 2008- 09, the total payment was to the tune of ₹ 2,30,34,169/- as charter hire charges. The Assistant Commissioner of Income Tax (TDS) was of the view that when charter hire charges are paid, the payments attracted the provisions of sec. 194-I of the act and assessee having failed to deduct tax at source was liable u/s 201(1) and 201(1A) of the Act. The ACIT(TDS) was of the view that it is not a case of simple contract for transport of goods but contract for hire of shipping vessel. The ACIT(TD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is a case of contract of carrier coming within the provisions of sec. 194C or hire simplictor of ships coming within the provisions of sec. 194-I, reading of contract/agreement entered between the assessee and the owner of the ships is must. The contract entered between the assessee and the ship owners are not placed on record though there is a reference to some of the clauses of contract in the order passed u/s 201 (1) and 201(1A) of the Act. We find the issue has not properly deliberated by both the AO and the CIT(A) with regard to the contract entered between the assessee and the ship owners. Therefore, for a proper appraisal of the issue and in the interest of justice and equity, we are of the view that the matter needs to be examined ..... X X X X Extracts X X X X X X X X Extracts X X X X
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