Section 172 of the Income Tax Act

Income-tax Act, 2025: s.316

Section 172 of the Income-tax Act, 1961 corresponds to section 316 (Shipping business of non-residents) of the Income-tax Act, 2025.

Read section 316 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 172 is CIT(A) v. Eon Technology Pvt. Ltd. (343 ITR 366), cited in 58 of the 72 judgments on BharatTax that turn on this section.

Leading authorities on Section 172

CIT(A) v. Eon Technology Pvt. Ltd.
343 ITR 366 · 2012 · High Court
58
citing judgments

Payments to a non-resident agent for services rendered outside India, where the agent has no permanent establishment (PE) or business connection in India, are not chargeable to tax in India. Consequently, there is no obligation to deduct tax at source under Section 195, and no disallowance under Section 40(a)(i) can be made.

DCIT v. Divi’s Laboratories Ltd.
131 ITD 271 · 2011 · ITAT
12
citing judgments

Section 195 of the Income Tax Act, 1961 does not require tax to be deducted at source on payments made to non-resident agents for services rendered entirely outside India, as such income is not taxable in India.

ITO v. Trident Exports
149 ITD 361 · ITAT
3
citing judgments
Poompuhar Shipping Corpn. Ltd. v. ITO (Int. Tax)-II, Chennai
76 ITD 37 · 2001 · ITAT
3
citing judgments

Judgments on Section 172

Income Tax Officer, Civic Centre, New Delhi vs. Naveen Arora, Lajpat Nagar, Delhi

Appeal is partly allowed

ITA 3251/DEL/2024[2017-18]Status: DisposedITAT Delhi07 Jan 2026AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Amitabh Shukla

Section 144Section 172Section 195Section 69ASection 69C

Darius Cavasji Shroff, Mumbai vs. Deputy Commissioner of Income Tax Circle 16(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 4731/MUM/2024[2021-22]Status: DisposedITAT Mumbai29 Nov 2024AY 2021-22

Bench: Smt. Beena Pillai & Smt. Renu Jauhridarius Cavasji Shroff V/S. Dcit, Circle 16(2) Moonlight, Flat No. 8, 158, बनाम Aayakar Bhavan, M.K. M. Karve Road, Road, Mumbai-400020 Mumbai-400020 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aacps7090J Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Ms. Priyanka JainFor Respondent: Shri. R. R. Makwana
Section 143(1)Section 172Section 174Section 174ASection 175Section 176Section 192Section 2(1)Section 2(9)Section 250

Nan Lian Ship Management Llc, Mumbai vs. JCIT (OSD)(Int Tax)-3(3)(1), Mumbai

In the result, the appeal filed by the assessee stands allowed

ITA 976/MUM/2023[2020-2021]Status: DisposedITAT Mumbai18 Aug 2023AY 2020-2021

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blenan Lian Ship Management Llc V. Jcit (Osd) (Intl. Tax) – 3(3)(1) 303, The Atrium Center Room No. 1630, 16Th Floor Khalid Bin Al Walled Road Air India Building Nariman Point, Mumbai – 400 021 Bur Dubai Po Box No. 82289 Dubai, Uae Nan Lian Ship Management Llc C/O. Nishit M. Gandhi Chambers 2 & 3, Ground Floor Cosmos Trade Place, Khatau Building Alkesh Dinesh Mody Marg Opp. Bombay Stock Exchange Fort, Mumbai - 400001 Pan: Aagcn0478E (Appellant) (Respondent)

Section 143(3)Section 144C(5)Section 172Section 44BSection 9(1)(vi)

M/S. Magnum Shipping Services, Mundra (Kutch) vs. The ITO-Intl. Taxn., Gandhidham

In the result, appeal of the assessee is allowed

ITA 355/RJT/2018[2017-18]Status: DisposedITAT Rajkot02 Aug 2023AY 2017-18

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmed

For Appellant: Shri B.D. Gupta, Sr. D.RFor Respondent: Date of Hearing
Section 172(4)Section 271(1)(c)

Deputy Commissioner of Income Tax (It)-3(1)(2), Mumbai vs. M/S Korea Marine Transport Co. Ltd, Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 2861/MUM/2022[2016-2017]Status: DisposedITAT Mumbai17 Mar 2023AY 2016-2017
For Appellant: Shri Sandesh DesaiFor Respondent: Shri Soumendu Kumar Dash (Sr
Section 143(2)Section 143(3)Section 144C(1)Section 44B

M/S. Saba Shipping International Llc- Dubai, Gandhidham vs. The Income Tax Officer, International Taxation, Gandhidham

In the result, both the appeals of the assessee are allowed

ITA 124/RJT/2012[2009-10]Status: DisposedITAT Rajkot06 Mar 2023AY 2009-10

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2009-10

For Appellant: Shri Vimal Desai, ARFor Respondent: Shri B.D. Gupta, Sr. DR
Section 143(3)Section 144CSection 172Section 172(3)Section 172(4)

M/S. Qawareb Ship Management - Llc Dubai, Gandhidham vs. The Income Tax Officer, International Taxation, Gandhidham

In the result, both the appeals of the assessee are allowed

ITA 123/RJT/2012[2009-10]Status: DisposedITAT Rajkot06 Mar 2023AY 2009-10

Bench: Ms. Suchitra Kamble & Shri Waseem Ahmedassessment Year: 2009-10

For Appellant: Shri Vimal Desai, ARFor Respondent: Shri B.D. Gupta, Sr. DR
Section 143(3)Section 144CSection 172Section 172(3)Section 172(4)

ITO, WD-3(1), Kolkata vs. M/S Ultimo Logistics Pvt. Ltd., Kolkata

In the result, the appeal of the assessee is treated as partly allowed for statistical purposes

ITA 345/KOL/2019[2012-13]Status: DisposedITAT Kolkata23 Sept 2022AY 2012-13

Bench: Shri Sanjay Garg & Shri Girish Agrawal

Section 194CSection 250Section 40

DCIT, Circle-74(1), New Delhi vs. Expeditors International (India) Pvt. Ltd., New Delhi

In the result, the appeal of the Revenue in ITA No

ITA 1006/DEL/2020[2012-13]Status: DisposedITAT Delhi16 Sept 2022AY 2012-13

Bench: Shri Saktijit Dey & Shri N.K. Billaiya

For Appellant: Shri Rohan Khare, AdvFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 172Section 172(1)Section 194CSection 197Section 201

The ACIT, Patan Circle, Patan vs. M/S. Rajena Agro Products Pvt. Ltd., Ahmedabad

In the result, the appeal filed by the Revenue is hereby dismissed

ITA 674/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad05 Aug 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 584/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 M/S. Rajena Agro Products Pvt. Ltd. D.C.I.T., C/O. Rangwala & Co., Vs. Patan Circle, 305, Sakar-1, Patan. Opp. Nehru Bridge, Navrangpura, Ahmedabad.

For Appellant: Shri S.K. Sadhwani, A.RFor Respondent: Shri R.R. Makwana, Sr.D.R
Section 40

Rajena Agro Products Pvt. Ltd., Patan vs. The Dy.CIT, Patan Circle, Patan

In the result, the appeal filed by the Revenue is hereby dismissed

ITA 584/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad05 Aug 2022AY 2015-16

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No. 584/Ahd/2019 िनधा"रण वष"/Asstt. Year: 2015-2016 M/S. Rajena Agro Products Pvt. Ltd. D.C.I.T., C/O. Rangwala & Co., Vs. Patan Circle, 305, Sakar-1, Patan. Opp. Nehru Bridge, Navrangpura, Ahmedabad.

For Appellant: Shri S.K. Sadhwani, A.RFor Respondent: Shri R.R. Makwana, Sr.D.R
Section 40

M/S J.M. Baxi & Co., Gandhidham vs. The Income Tax Officer, (Inter. Taxa.), Gandhidham

In the result, appeal of the assessee is allowed for statistical purpose

ITA 64/RJT/2016[2014-15]Status: DisposedITAT Rajkot22 Jun 2022AY 2014-15

Bench: S/Shri Waseem Ahmed & T.R. Senthil Kumarassessment Year : 2014-15 M/S.J.M. Baxi & Co Income-Tax Officer Chetna Chambers Vs (International Taxation) 3Rd Floor, Rom No.307-312 Gandhidham. Plot No.38, Sector 9 Gandhidham 370 201. (Applicant) (Responent) : Shri Deepak Rindani, Ar Assessee By Revenue By : Shri S.S. Rathi, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 17/05/2022 घोषणा क" तार"ख /Date Of Pronouncement: 22 /06/2022 आदेश/O R D E R

For Respondent: Shri S.S. Rathi, Sr.DR
Section 144CSection 172(4)

Interocean Shipping (India) Pvt. Ltd., Mumbai vs. The Deputy Commissioner of Income Tax (International Taxation), Gandhidham

The appeal of the assessee is allowed in above terms

ITA 3512/AHD/2016[2015-16]Status: DisposedITAT Rajkot01 Jun 2022AY 2015-16
For Appellant: Shri Rashmikant C. Modi, A.RFor Respondent: Shri Nihar Ranjan Samal, Sr.D.R
Section 139(1)Section 172Section 172(3)Section 172(4)Section 172(7)Section 250(6)

Pacc Container Line Pte Limited, Singapore Rep by Its Indian Agent M/S J M Baxi & Co, Nellore vs. Income Tax Officers, (International Taxation), Nellore

In the result, all the appeals of the assessee are dismissed

ITA 551/HYD/2021[2018-19]Status: DisposedITAT Hyderabad27 Apr 2022AY 2018-19

Bench: Shri Laliet Kumar & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V. RaghuramFor Respondent: Shri T. Sunil Goutam
Section 172Section 194

Pacc Container Line Pte Limited, Singapore Rep by Its Indian Agent M/S J M Baxi & Co, Nellore vs. Income Tax Officers, (International Taxation), Nellore

In the result, all the appeals of the assessee are dismissed

ITA 550/HYD/2021[2014-15]Status: DisposedITAT Hyderabad27 Apr 2022AY 2014-15

Bench: Shri Laliet Kumar & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V. RaghuramFor Respondent: Shri T. Sunil Goutam
Section 172Section 194

Pacc Container Line Pte Limited, Nellore vs. Income Tax Officer, (International Taxation), Nellore

In the result, all the appeals of the assessee are dismissed

ITA 27/HYD/2018[2015-16]Status: DisposedITAT Hyderabad27 Apr 2022AY 2015-16

Bench: Shri Laliet Kumar & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V. RaghuramFor Respondent: Shri T. Sunil Goutam
Section 172Section 194

Pacc Container Line Pte Limited, Nellore vs. Income Tax Officer, (International Taxation), Nellore

In the result, all the appeals of the assessee are dismissed

ITA 26/HYD/2018[2015-16]Status: DisposedITAT Hyderabad27 Apr 2022AY 2015-16

Bench: Shri Laliet Kumar & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V. RaghuramFor Respondent: Shri T. Sunil Goutam
Section 172Section 194

Pacc Container Line Pte Limited, Nellor vs. Income Tax Officer, (International Taxation), Nellore

In the result, all the appeals of the assessee are dismissed

ITA 25/HYD/2018[2015-16]Status: DisposedITAT Hyderabad27 Apr 2022AY 2015-16

Bench: Shri Laliet Kumar & Shri Laxmi Prasad Sahu

For Appellant: Shri A.V. RaghuramFor Respondent: Shri T. Sunil Goutam
Section 172Section 194

The ITO, Ward-2, Gandhidham vs. M/S Terapanth Foods Ltd., Gandhidham

In the result, appeal of the Revenue is dismissed

ITA 330/RJT/2008[2005-06]Status: DisposedITAT Rajkot04 Feb 2022AY 2005-06

Bench: Shri Waseem Ahmed & Ms. Suchitra Kambleassessment Year: 2005-06

For Appellant: Shri S.S. Rathi, Sr. D.RFor Respondent: Shri K.C. Thacker, A.R
Section 143(1)Section 143(2)Section 172Section 172(1)Section 195Section 40Section 44A

Sagar Powertex Pvt. Ltd. (Earlier Sagar Agencies Pvt.Ltd.), Ahmedabad vs. The Jt.CIT, Range-8, Ahmedabad

In the result, the appeal of the assessee is partly allowed statistical purposes

ITA 304/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad22 Jun 2021AY 2009-10

Bench: Shri Waseem Ahmed & Ms Madhumita Royआयकर अपील सं./Ita No.304/Ahd/2014 िनधा"रण वष"/Asstt. Year: 2009-2010 Sagar Powertex Pvt. Ltd., J.C.I.T., (Earlier Sagar Agencies Pvt. Ltd.) Vs. Range-8, 803, Sahajanand Complex, Ahmedabad. Shahibaug Road, Shahiibaug Ahmedabad-380004. Pan: Aadcs0473P

For Appellant: Shri Manish J. Shah, A.RFor Respondent: Shri R.R. Makwana, Sr.D.R
Section 14ASection 40Section 80Section 80I