{"id":9477,"date":"2015-01-12T09:09:25","date_gmt":"2015-01-12T03:39:25","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=9477"},"modified":"2015-01-12T09:09:25","modified_gmt":"2015-01-12T03:39:25","slug":"acit-vs-indian-furniture-products-limited-itat-panaji-s-40ai-usance-charges-paid-by-the-assessee-on-import-of-raw-material-from-foreign-countries-attracts-tax-in-india-us-52b-r-w-s-91v","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/acit-vs-indian-furniture-products-limited-itat-panaji-s-40ai-usance-charges-paid-by-the-assessee-on-import-of-raw-material-from-foreign-countries-attracts-tax-in-india-us-52b-r-w-s-91v\/","title":{"rendered":"ACIT vs. Indian Furniture Products Limited (ITAT Panaji)"},"content":{"rendered":"<p>From reading the decisions of the Hon&#8217;ble Supreme Court in <strong>CIT vs. Vijay Ship Breaking Corporation<\/strong> as reported in 314 ITR 309 (SC) and the Hon&#8217;ble Gujarat High Court (reported in 261 ITR 113) it is apparent that the Hon&#8217;ble Supreme Court has not reversed the decision in the case of <strong>CIT vs. Vijay Ship Breaking Corporation<\/strong>, 261 ITR 113 (supra) on the finding that the usance charges are not interest u\/s 2(28A) except where an undertaking is engaged in the business of ship breaking in view of explanation (2) to Sec. 10(15)(iv)(c) inserted by the Taxation Laws (Amendment) Act, 2003 with retrospective effect. In our view, the decision of the Hon&#8217;ble Gujarat High Court has impliedly been approved by the Hon&#8217;ble Supreme Court in respect of Assessees who are engaged in the business of ship breaking. Consequently, the Assessee was bound to deduct TDS u\/s 195(1) in respect of usance charges paid by the Assessee on import of raw material from countries outside India like Japan, Belgium, Germany, USA etc and failure to do so entails disallowance u\/s 40(a)(i)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From reading the decisions of the Hon&#8217;ble Supreme Court in <strong>CIT vs. Vijay Ship Breaking Corporation<\/strong> as reported in 314 ITR 309 (SC) and the Hon&#8217;ble Gujarat High Court (reported in 261 ITR 113) it is apparent that the Hon&#8217;ble Supreme Court has not reversed the decision in the case of <strong>CIT vs. Vijay Ship Breaking Corporation<\/strong>, 261 ITR 113 (supra) on the finding that the usance charges are not interest u\/s 2(28A) except where an undertaking is engaged in the business of ship breaking in view of explanation (2) to Sec. 10(15)(iv)(c) inserted by the Taxation Laws (Amendment) Act, 2003 with retrospective effect<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/acit-vs-indian-furniture-products-limited-itat-panaji-s-40ai-usance-charges-paid-by-the-assessee-on-import-of-raw-material-from-foreign-countries-attracts-tax-in-india-us-52b-r-w-s-91v\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,8],"tags":[],"class_list":["post-9477","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-tribunal","judges-d-t-garasia-jm","judges-p-k-bansal-am","section-407","section-40ai","section-52b","section-91vb","counsel-elson-sequeira","court-itat-panaji","catchwords-usance-charges","genre-international-tax"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/9477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=9477"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/9477\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=9477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=9477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=9477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}