Tribunal held, that Circular No. 723 dated September 19, 1995 provides that since the agent acts on behalf of the non-resident ship-owner or charterer, he steps into the shoes of the principal. Accordingly, the provisions of section 172 would apply and those of sections 194C and 195 would not apply. Therefore the disallowance was not required to be made. (AY. 2013-14)
Suresh Khatri v. ITO (2020) 82 ITR 29 (Luck.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Shipping expenses in nature of freight-Agent acting on behalf of Non-Resident ship owner or Charterer-Not required to deduct tax at source. [S. 172, 194C, 195]