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TMI Blog2020 (2) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... harter, the agent steps into the shoe of the Principal i.e. shipping company and according to the provisions under Section 172 of the Act, 1961 which provides for shipping business in respect of the non-residents would be applicable and the provisions of Section 194C or 195 which provides for deduction of tax at source shall not be applicable. The Tribunal, therefore, held in the facts and circumstances of the case that the PCIT failed to consider during the course of assessment proceedings that the assessee had furnished the relevant materials in respect of export freight payment and it is also not controverted by the PCIT, and therefore, on the basis of undisputable finding brought on record by the respondent assessee during the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f CIT on ground of non TDS on freight payments and upholding the same on some other grounds raised therein? 3. The respondent assessee has filed its return of income for the assessment year 2013-14 declaring total loss of ₹ 1,35,18,193/. The Assessing Officer, by order dated 22nd March 2018, finalised the assessment under Section 143(3) of the Act, 1961. 4. Thereafter, the Principal Commissioner of Income Tax [for short, the PCIT ] invoked power of revision under Section 263 of the Act, 1961 on the ground that without deducting TDS on the export freight, the assessee company had paid export freight amounting to ₹ 2,03,66,683/to Inter Ocean Shipping and Logistic Services. According to the PCIT, as no TDS return showin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on behalf of the nonresident shipping company for collecting freight demurrage and other charges and reimburse the same to the shipping company. Therefore, relying upon the CBDT circular No.723 dated 19th September 1995, the Tribunal held that where payment is made to the shipping agents of the nonresident, ship owner or charter, the agent steps into the shoe of the Principal i.e. shipping company and according to the provisions under Section 172 of the Act, 1961 which provides for shipping business in respect of the nonresidents would be applicable and the provisions of Section 194C or 195 which provides for deduction of tax at source shall not be applicable. The Tribunal, therefore, held in the facts and circumstances of the case that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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