Seaways Shipping & Logistics Ltd., Kakinada V. The ITO,(International Taxation), Kakinada

ITA 404/VIZ/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8950 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 21-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Double taxation relief; Deemed to accrue or arise in india

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI D. MANMOHAN, HONBLE VICE-PRESIDENT ITA NO. 404/VIZ/2016 (ASST. YEAR : 2014-15) M/S. SEAWAYS SHIPPING & LOGISTICS LTD., 16-23-61, A/1, PALLAMRAJU NAGAR, KAKINADA, AGENT FOR M/S. EMMSONS ASIA PTE. LTD., SINGAPORE. VS. ITO (INTERNATIONAL TAXATION), KAKINADA. PAN NO. AADCS 0845 B (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE. DEPARTMENT BY : SHRI M.K. SETHI - SR. DR DATE OF HEARING : 01/05/2017. DATE OF PRONOUNCEMENT : 01/05/2017. O R D E R THIS APPEAL BY THE ASSESSEE-COMPANY IS ADMITTEDLY BARRED BY LIMITATION BY 66 DAYS AND ACCORDINGLY ASSESSEE WAS INFORMED. ON BEHALF OF THE ASSESSEE-COMPANY CAPT. P.V.K. MOHAN, CHAIRMAN & MANAGING DIRECTOR FILED AN AFFIDAVIT ALONG WITH MEDICAL CERTIFICATE FOR SEEKING CONDONATION OF DELAY, WHEREIN IT WAS EXPLAINED THAT SHRI Y.V. NAGESWARA RAO WAS SUFFERING FROM SEVERE LOW BACK PAIN DURING THE RELEVANT POINT, WHICH RESULTED IN DELAY IN FILING THE APPEAL. 2. HAVING REGARD TO CIRCUMSTANCES, I CONDONE THE DELAY AND APPEAL IS ADMITTED. 2 ITA NO. 404/VIZ/2016 (M/S. SEAWAYS SHIPPING & LOGISTICS LTD.) 3. THOUGH, NOTICE WAS SENT BY RPAD, NONE APPEARED ON BEHALF OF THE ASSESSEE AND, THEREFORE, THIS APPEAL IS DISPOSED OF EXPARTE QUA THE ASSESSEE. 4. IT MAY BE NOTICED THAT ASSESSING OFFICER PASSED AN ORDER UNDER SECTION 172(4) OF THE ACT WHEREIN DEEMED INCOME WAS DETERMINED AT 47,52,360/- . 5. AN APPEAL WAS PREFERRED BEFORE THE LD. CIT(A) CONTENDING INTER ALIA THAT THE ASSESSING OFFICER ERRED IN STRICTLY INTERPRETING DTAA BETWEEN INDIA & SINGAPORE WHILE CONCLUDING THAT ONLY FREIGHT BENEFICIARY IN SINGAPORE SHALL BE EXEMPT FROM TAX IN INDIA. 6 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A LOCAL AGENT ON BEHALF OF THE NON-RESIDENT SHIPPING COMPANY I.E. M/S. PTE LTD., SINGAPORE. IT HAD FILED AN APPLICATION FOR GRANT OF NOC IN RESPECT OF VESSEL VIANCO WEALANE. THE SAID VESSEL DEPARTED FROM KAKINADA PORT ON 17/06/2010 TO BENIN WITH A CARGO OF 15000 M/T OF RICE BAGS. THE LOCAL AGENT CLAIMED THAT THE FREIGHT BENEFICIARY IS A RESIDENT OF SINGAPORE AND IN VIEW OF THE DTAA BETWEEN INDIA & SINGAPORE, THE ENTIRE FREIGHT EARNED BY THE BENEFICIARY IS EXEMPT FROM TAX IN INDIA. DURING THE COURSE OF PROCEEDINGS UNDER SECTION 172(4) OF THE ACT, THE LOCAL AGENT WAS TO FILE DETAILS INCLUDING FREIGHT REMITTANCE. THE LOCAL AGENT FILED ONLY TRC OF THE FREIGHT BENEFICIARY. SINCE, THERE WAS NO RESPONSE FROM THE LOCAL AGENT VIS-A-VIS FURTHER EVIDENCE CALLED FOR. THE ASSESSING OFFICER PRESUMED THAT THE LOCAL AGENT HAS NO DOCUMENTARY 3 ITA NO. 404/VIZ/2016 (M/S. SEAWAYS SHIPPING & LOGISTICS LTD.) EVIDENCE TO EXPLAIN THAT THE FREIGHT WAS RECEIVED / REMITTED TO SINGAPORE. ACCORDINGLY, HE ARRIVED AT A CONCLUSION THAT ARTICLE 24 OF DTAA SQUARELY APPLIES TO THE FACTS OF THE PRESENT CASE AND CONSIDERED FOR TAXATION. 7 . THOUGH, ASSESSEE CHALLENGED THE ORDER OF THE ASSESSING OFFICER BEFORE THE LD. CIT(A), NONE APPEARED FOR THE ASSESSEE, DESPITE OF SEVERAL NOTICES, AS NOTICED FROM PARA 7.3 OF THE LD. CIT(A)S ORDER WHICH READS AS UNDER:- 7.3 IT IS SEEN THAT THE ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITY TO FILE THE DETAILS AND THE ORDER WAS PASSED ONLY ON 31/12/2014 AND THE FIRST LETTER WAS ISSUED ON 05/08/2014. THE ASSESSEE HAD MORE THAN FOUR MONTHS TIME TO FILE THE DETAILS AND THE LAST HEARING WAS ON 16/12/2014. THEREFORE, IT CANNOT BE SAID THAT THE ASSESSEE WAS NOT GIVEN ENOUGH OPPORTUNITY. THEREFORE, THIS GROUND OF APPEAL IS DISMISSED. UNDER THESE CIRCUMSTANCES, THE LD. CIT(A) CONSIDERED THE ISSUE ON MERITS AND ON A CONSPECTUS OF THE MATTER, HE CONCLUDED THAT ONUS IS ON THE ASSESSEE TO SHOW THAT EITHER THE FREIGHT AMOUNT WAS RECEIVED OR REMITTED IN SINGAPORE OR FOR CONSIDERATION TO AVAIL THE BENEFIT OF DTAA PROVISIONS. IN ABSENCE OF SUCH EVIDENCE, NO RELIEF WAS GRANTED. 8 . THOUGH, ASSESSEE PREFERRED FURTHER APPEAL BEFORE THE TRIBUNAL, NONE APPEARED ON BEHALF OF THE ASSESSEE, EVEN IN RESPONSE TO THE NOTICE ISSUED BY THE TRIBUNAL BY RPAD. HAVING REGARD TO THE FACT THAT NONE APPEARED ON BEHALF OF THE ASSESSEE EVEN BEFORE THE LD. CIT(A), I AM OF THE VIEW THAT THE ASSESSEE IS NOT INTERESTED IN PROSECUTING THE APPEAL AND ALSO NO MATERIAL WAS FILED BEFORE ME TO CONTROVERT THE FINDINGS OF 4 ITA NO. 404/VIZ/2016 (M/S. SEAWAYS SHIPPING & LOGISTICS LTD.) THE ASSESSING OFFICER / LD. CIT(A). UNDER THESE CIRCUMSTANCES, I FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). ACCORDINGLY, ORDER PASSED BY THE LD. CIT(A) IS CONFIRMED. 9 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 01 ST DAY OF MAY, 2017. SD/- (D. MANMOHAN) VICE-PRESIDENT DATED : 01 ST APRIL, 2017. VR/- COPY TO: 1. THE ASSESSEE - M/S. SEAWAYS SHIPPING & LOGISTICS LTD., 16-23-61, A/1, PALLAMRAJU NAGAR, KAKINADA, AGENT FOR M/S. EMMSONS ASIA PTE. LTD., SINGAPORE. 2. THE REVENUE - ITO (INTERNATIONAL TAXATION), KAKINADA. 3. THE CIT (IT & TP), HYDERABAD. 4. THE CIT(A)-10, HYDERABAD. 5. THE D.R., VISAKHAPATNAM. 6. GUARD FILE. BY ORDER