Case Law Details
ITO Vs Terapanth Foods Limited (ITAT Rajkot)
It is pertinent to note that the CIT(A) has categorically mentioned that Section 195 of the Act would apply only if payment is made which is chargeable under Income Tax Act 1961. The Assessing Officer has not given any reason as to why the chargeability of tax under Section 172 of the Act does not cover time charter of ships for which payment is made to non-resident. The Assessing Officer totally ignored the NOCs issued by Department allowing the ship for sailing in Indian Port as the payment is for time charter. The provisions of Section 172 of the Act has not at all indicated that there is any liability to pay tax on such receipts by the non-resident recipients. In this case, the charter ship for which payment was made to non-resident. As per the charging Section 172, no liability arises for payment of tax by the non- resident receiving payment for time charter.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
This appeal is filed by the Revenue against the order dated 27.03.2008 passed by the CIT(A)-II, Rajkot for the Assessment Year 2005-06.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
