Assistant Commissioner of Income Tax, Central Circle, Panaji V. Prime Mineral Exports Pvt. Ltd, Panaji

ITA 28/PAN/2023

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 8318 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: WT(D)
• Next Hearing Date: 12-12-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 06-02-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH – VIRTUAL COURT (at Pune) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.28/PAN/2023 Assessment Year : 2012-13 ACIT, Central Circle, Panaji Vs. Prime Mineral Exports Pvt. Ltd., F-1, Ist Floor, Oceanic Apartments, Behind Hanuman Temple, Miramar, Panaji, Goa – 403001 PAN : AADCP1647E Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the Revenue directed against the order of CIT(A)-2, Panaji dated 14.11.2022 for the assessment year 2012- 13. 2. When the appeal was called on, none appeared on behalf of the respondent-assessee despite due service of notice of hearing. We, therefore, proceed to dispose of the appeal ex parte qua the assessee. Assessee by : None Revenue by : Shri Badrinath Yamaji Chavan Date of hearing : 07.03.2024 Date of pronouncement : 08.03.2024 ITA No.28/PAN/2023 2 3. Briefly, the facts of the case are that the respondent-assessee is a company incorporated under the provisions of the Companies Act and it is engaged in the business of processing and trading in Iron-ore. Return of income for the A.Y. 2012-13 was filed on 29.09.2012 declaring total income of Rs.266,47,93,720/-. Against the said return of income, the assessment was completed by the Assessing Officer (AO) vide order dated 30.03.2015 passed u/s.143(3) of the Act at a total income of Rs.304,37,76,805/-. While doing so, the AO made the following disallowances : Total income as per return of income Rs.266,47,93,720/- Add (1) Disallowance u/s.14A Rs.1,93,60,104/- (2) Addition on account of Undisclosed sale receipts based on DRI Report Rs.24,11,90,940/- (3) Disallowance of Consultancy, Destination/Sampling Charges u/s.40(a)(i) Rs.4,93,57,517/- (4) Disallowance of demurrage paid without TDS Rs.6,88,44,215/- (5) Addition on account of Interest Income Rs. 2,30,309/- ----------------------- Assessed Total Income Rs.304,37,76,805/- ----------------------- 4. Being aggrieved by the above assessment order, the appeal was filed before the CIT(A) who vide impugned order had directed the AO to delete the addition to the extent of Rs.4,41,62,650/- being demurrage charges paid to the parties to the non resident parties with ITA No.28/PAN/2023 3 whom the assessee had entered into Double Taxation Avoidance Agreement following the decision of Hon’ble Bombay High Court in CIT Vs. V.S. Dempo & Co. Pvt. Ltd. 381 ITR 303 (Bom)(FB) and CIT Vs. Sesa Goa Ltd. in ITA Appeal No.989,991 of 2015 and 948, 957, 978 of 2015. 5. Being aggrieved by the decision of CIT(A), the Revenue is in appeal before us in the present appeal. 6. The ld. CIT-DR submits that the ratio of the decision in the case of CIT Vs. V.S. Dempo & Co. Pvt. Ltd. 381 ITR 303 (Bom)(FB) has no application to the facts of the present case and therefore, prayed for quashing of the impugned order. 7. We have heard the ld. DR and perused the relevant material on record. The solitary issue that arises for our consideration is whether the demurrage charges paid by the respondent-assessee to the foreign companies can be disallowed for non deduction of tax at source u/s.195 of the Income-tax Act, 1961. The AO made the disallowance of demurrage charges at Rs.6,88,44,215/- paid to various shipping companies on the ground that the appellant had failed to deduct tax at source on such payment following the decision of Hon’ble Bombay ITA No.28/PAN/2023 4 High Court in the case of CIT Vs. Orient Goa Co. Pvt. Ltd. 325 ITR 554. The said decision has been overruled by the Full Bench of Hon’ble Bombay High Court subsequently in the case of CIT Vs. V.S. Dempo & Co. Pvt. Ltd. 381 ITR 303 (Bom)(FB). The order passed by the ld. CIT(A) is in consonance with the law laid down by the Hon’ble Jurisdictional High Court supra. Therefore, we do not find any reason to interfere with the order passed by the ld. CIT(A). 8. In the result, the appeal of the Revenue is dismissed. Order pronounced on this 08 th day of March, 2024. Sd/- Sd/- (S.S. GODARA) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; दनांक / Dated : 08 th March, 2024. Satish आदेश क ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. यथ / The Respondent. 3. The CIT-2, Panaji 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, Panaji / DR, ITAT, Panaji. 5. गाड फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. ITA No.28/PAN/2023 5 Date 1. Draft dictated on 07-03-2024 Sr.PS 2. Draft placed before author 08-03-2024 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.