No TDS on ocean freight paid to non-resident shipping companies

Shri Suresh Khatri Vs ITO (ITAT Lucknow) Ground Nos. 1 to 3 of the appeal relate to the disallowance of Rs.6,42,437/- for non deduction of tax at source u/s 40(a)(ia) of the Act on payment of ocean freight, made to non-resident shipping companies. The assessee is a proprietary concern and engaged in the business of manufacturing of leather and cotton items. During the year under consideration, the assessee had exported goods and made payment of Rs.6,42,437/- towards shipping expenses in the nature of freight. The Assessing Officer observed that the payments, made by the assessee, come within t...