Case Law Details
PCIT Vs Summit India Water Treatment (Gujarat High Court)
In the given case, the respondent assessee has filed its return of income for the assessment year 2013-14. The Principal Commissioner of Income Tax 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 to Inter Ocean Shipping and Logistic Services.
According to the CBDT circular No.723 dated 19th September 1995, the Tribunal held that where payment is made to the shipping agents of the non-resident, 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 appeal, therefore, fails and is accordingly dismissed.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.