Sec. 40(a)(ia), 172, 194C and 195, of the Income-tax Act, 1961 – Non-resident – After finalizing the assessment, PCIT invoked power of revision under section 263 of the Act, 1961 on the ground that without deducting TDS on the export freight, the assessee company had paid export freight amounting to Rs. 2,03,66,683/- to Inter Ocean Shipping and Logistic Services. According to the PCIT, as no TDS return showing the details of deduction of any tax in respect of the aforesaid export freight had been filed and as the AO had not verified the same, the scope of provisions of TDS on export freight at the rates specified of the Act, 1961, the entire amount was required to be disallowed under section 40(a)(ia)of the Act, 1961. The PCIT directed the AO to pass fresh assessment order. Tribunal allowed the appeal of the assessee holding that the PCIT failed to consider during the course of assessment proceedings that the assessee had furnished the relevant materials in respect of export freight payment and it is also not controverted by the PCIT, and therefore, on the basis of undisputable finding brought on record by the respondent assessee during the course of assessment proceedings under section 263 of the Act, 1961, it cannot be said that the assessment order is erroneous or prejudicial to the interest of the Revenue in any manner. High Court dismissed the revenue Tax Appeal holding that none of the questions can be termed as substantial questions of law from the impugned order passed by the Tribunal – PR. CIT Vs. SUMMIT INDIA WATER TREATMENT & SERVICES LTD. [2020] 271 TAXMAN 069 (GUJ)