Income Tax Appellate Tribunal - Hyderabad
Pacc Container Line Pte Ltd, Rep By Agent ... vs Ito,(International Taxation), ... on 10 March, 2017
SA Nos 31 and 32 of 2017 PACC Container Line P Ltd Singapore
IN THE INCOME TAX APPELLATE TRIBUNAL
Hyderabad ' A ' Bench, Hyderabad
Before Smt. P. Madhavi Devi, Judicial Member
AND
Shri S.Rifaur Rahman, Accountant Member
S.A.Nos. 31 & 32/Hyd/2017
(Arising out of ITA Nos. 244 & 245/Hyd/2017)
(Assessment Year: 2014-15)
M/s. PACC Container Line Vs Income Tax Officer
Pte Ltd, Singapore (International Taxation)
(Rep. by JM Baxi & Co Nellore
Nellore
PAN: AAGCP 0145 G
For Assessee : Shri P. Vinod
For Revenue : Smt. Suman Malik, DR
Date of Hearing: 10.03.2017
Date of Pronouncement: 10.03.2017
ORDER
Per Smt. P. Madhavi Devi, J.M.
Both the stay applications are filed by the assessee.
2. Brief facts of the case are that the assessee is a non- resident Shipping Company. It is a resident of Singapore. Two vessels 'MV PAC SCHEDER' and 'MV PAC ATHENA' had departed from Krishnapatnam Port on 2.6.2013 and 13.09.2013 respectively. The local agent of the assessee M/s J.M. Baxi & Co filed the return u/s 172(3) after obtaining the NOC. The agent company was asked to file the breakup of expenditure, net freight paid to the freight beneficiary and copy of the bank account showing transfer of funds to the F.B A/c in Singapore. In Page 1 of 3 SA Nos 31 and 32 of 2017 PACC Container Line P Ltd Singapore response thereto, the assessee filed copy of the a/c transaction in OCBC A/c, but since the name of the beneficiary is not reflected therein, the AO did not accept the same and computed the tax payable u/s 172(4) for both the transactions at Rs.10,00,170 and Rs.18,69,564 respectively. Aggrieved, the assessee preferred appeals before the CIT (A) with a delay, but the CIT (A) has dismissed the assessee's appeals without condoning the delay. Aggrieved, the assessee is in appeal before us.
3. It is submitted by the learned Counsel for the assessee that the issue before us is against taxing of the freight charges that are transferred to Singapore on the ground that the Bank A/c statement furnished by the assessee does not contain assessee's name and therefore, the assessee has not demonstrated that the freight charges are transferred to Singapore. It is the case of the assessee that the bank statement of the assessee at Singapore with the assessee's name is filed before the CIT (A) under Rule 46A, but the CIT (A) has not admitted the same on the ground that the assessee has not demonstrated that it was not pursuing the petition u/s 264 of the Act. It is submitted that such a requirement to waive the right of appeal is there only to pursue petition u/s 264 and not vice versa. Further, it is submitted that the CIT (A) has refused to condone the delay and did not deal with the appeal on merits. Thus, according to the learned Counsel for the assessee, the assessee has a good case on merits and therefore, the outstanding demand of tax should be stayed till the disposal of the appeal. Further, it is also stated that the Revenue is determined to collect the demand and that the Indian Agent has no funds and would suffer Page 2 of 3 SA Nos 31 and 32 of 2017 PACC Container Line P Ltd Singapore if the tax is collected from the agent of the assessee. The learned Counsel for the assessee reiterated the submissions made in the stay petition. The learned DR however, opposed the grant of stay.
4. Having regard to the rival contentions and the material on record, we deem it fit and proper to reject the stay application and grant early hearing to the assessee. The appeals are directed to be listed before the Bench on 21.3.2017 and both the parties shall argue the matter without seeking any adjournment.
5. In the result, stay applications filed by the assessee are partly allowed.
Order pronounced in the Open Court on 10th March, 2017.
Sd/- Sd/-
(S.Rifaur Rahman) (P. Madhavi Devi)
Accountant Member Judicial Member
Hyderabad, dated 10th March, 2017.
Vinodan/sps
Copy to:
1 M/s.PACC Container Line Pte Ltd (Singapore) Rep. by Indian Agent M/s. JM Baxi & Co. Harbour Heights, Block 1 Opp:
Panchayat Office, Muthukur Main Road, Muthukur 524344 Nellore Distt.
2 Income Tax Officer (International Taxation) Nellore 3 CIT (A)-10 Hyderabad 4 CIT - (IT & TP) Hyderabad 5 The DR, ITAT Hyderabad 6 Guard File By Order Page 3 of 3