| Case ID |
0a400ace-e87c-49fe-928d-e70cc6eec09d |
| Body |
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| Case Number |
D-2741 of 2010 |
| Decision Date |
Jun 07, 2010 |
| Hearing Date |
Jun 07, 2010 |
| Decision |
The Supreme Court upheld the decision of the lower courts, confirming that the non-resident company effectively received the charter fee in India through the 85% share of the fish catch, which was taxable under section 5(2) of the Income-tax Act. The Court ruled that the assessee was liable to deduct tax under section 195 on the payment made to the non-resident company. The appeal was dismissed without any order as to costs, affirming the findings of the Assessing Officer, the Commissioner (Appeals), and the Tribunal. |
| Summary |
This case revolves around the tax obligations of Kanchanganga Sea Foods Ltd., which engaged in the chartering of fishing vessels from Eastwide Shipping Co. (HK) Ltd. for the purpose of fishing in India's exclusive economic zone. The Supreme Court of India addressed whether the income earned by the non-resident company was chargeable to tax in India given that the fishing operations occurred outside territorial waters. The Court concluded that the income was indeed taxable as the non-resident company received payment through the fish catch brought to an Indian port. This case highlights significant aspects of international taxation and the obligations of resident companies when dealing with non-residents, particularly in the fishing and export sectors. The ruling reinforces the importance of complying with tax deduction requirements under the Income-tax Act, 1961, specifically sections 195 and 5. Keywords include 'Income-tax Act', 'tax obligations', 'non-resident taxation', 'fishing industry', 'tax compliance', and 'international taxation'. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income Tax,
Kanchanganga Sea Foods Ltd.,
Eastwide Shipping Co. (HK) Ltd.
|
| Judges |
D.K. Jain,
C.K. Prasad
|
| Lawyers |
A. Subba Rao,
Naik H.K.,
R.P. Bhatt,
H.R. Rao,
Yatinder Choudhary,
B.V. Balaram Das
|
| Petitioners |
Kanchanganga Sea Foods Ltd.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
2010 SLD 2740,
(2010) 325 ITR 540
|
| Other Citations |
Kanchanganga Sea Foods Ltd. v. CIT [2004] 36 Taxman 8 (AP),
CIT v. Toshoku Ltd. [1980] 125 ITR 525 (SC),
Ishikawajma-Harima Heavy Industries Ltd. v. DIT [2007] 288 ITR 408/158 Taxman 259 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
195,
5
|