Law:

Section:

ORDER 1. The Court : The subject matter of challenge in this appeal is a judgement and order dated 15th May 2010 by which the learned Tribunal dismissed the appeal preferred by the assessee upholding the views of the CIT (appeals) who had upheld the views of the assessing officer refusing to allow deduction of a sum of Rs.37,33,527/- on the ground that "the assessee did not deduct tax at source for the said expenses even till-date. Hence Rs.37,33,527/- is added back to the total income of the assessee for the previous year relevant to Asstt. Year 2005-06 as per provisions of section 40(a)(ia) of the Income -Tax Act, 1961." 2. Mr. Shome, learned senior advocate appearing for the assessee appellant drew our attention to various bills included in the paper book which were also before the learned Tribunal in order to show that the goods exported by the assessee were carried by Lufthansa Airlines. For the purpose of availing the service of the aforesaid carrier assistance of four several agents of the aforesaid carrier was taken, particulars whereof and the amount paid to them are as follows ;- (i) Bag Global (I) Ltd. : Rs. 33,61,081/- (ii) H.T.L. Logistics (I) Pvt. Ltd. : Rs. 2,46,426/- (iii) The Express Pvt. Ltd. : Rs. 67,275/- (iv) Green Ways Shipping Corporation : Rs. 58,745/- Rs. 37,33,527/- 3. Mr. Shome submitted that the appellant was under no obligation to deduct tax at source in respect freight paid to a foreign carrier. He drew our attention in support of his contention to the judgement in the case of GE India Technology Centre (P.) Ltd. v. CIT [2010] 327 ITR 456/193 Taxman 234/7 taxmann.com 18 wherein the Apex Court opined as follows ;- ',. The most important expression in section 195(1) consists of the words "chargeable under the provisions of the Act". A person paying interest or any other sum to a non-resident is not liable to deduct tax if such sum is not chargeable to tax under the Income-tax Act. For instance, where there is no obligation on the part of the payer and no right to receive the sum by the recipient and the payments does not arise out of any contract or obligation between the payer and the recipient but is made voluntarily, such payments…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492