| |
| The Tax Publishers2020 TaxPub(DT) 1546 (Bom-HC) : (2020) 423 ITR 0426 : (2020) 316 CTR 0446 INCOME TAX ACT, 1961
Section 195
CBDT Circular Number 723, dated 19-9-1995 deals with provision of sections 172, 194C and 195 and from perusal thereof it becomes apparently clear that provisions of sections 194C and 195 relating to tax deduction at source are not applicable. Since Circular issued by the CBDT was binding on the Department, assessee was not obliged to deduct tax from payment made as demurrage charges and demurrage charges were also liable to be taxed under section 172. Since assessee was not liable to deduct tax at source, no question arose for making any disallowance under section 40(a)(i).
|
Tax deduction at source - Under section 195 - Demurrage charges paid to non-resident buyers of iron ore -
Assessee-company claimed deduction of demurrage charges paid to non-resident buyers of iron ore. AO disallowed deduction for want of TDS. Held:CBDT Circular Number 723, dated 19-9-1995 deals with provision of sections 172, 194C and 195 and from perusal thereof it becomes apparently clear that provisions of sections 194C and 195 relating to tax deduction at source are not applicable. Since Circular issued by the CBDT was binding on the Department, assessee was not obliged to deduct tax from payment made as demurrage charges and demurrage charges were also liable to be taxed under section 172. Since assessee was not liable to deduct tax at source, no question arose for making any disallowance under section 40(a)(i).
REFERRED :
FAVOUR : in assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 37(1)
 SUBSCRIBE FOR FULL CONTENT
|