Assessee-company is  engaged in business of mining, production and export of iron ore, shipping and ship building . Demurrage charges paid by assessee to non-resident companies were disallowed by Assessing Officer for failure to deduct tax at source . On appeal the Court held that   demurrage paid by assessee-company to non-resident buyers of iron ore in terms of relevant sales contract was not income accrued or arisen to said non-resident buyers in India within meaning of section 5(2)(b) read with Explanation 1(b) to section 9(1)(i), and thus no disallowance was to be made under section 40(a)(i).  ( AY. 2008 -09 )