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2013 (10) TMI 742 - AT - Income TaxComputation of profit from Shipping business u/s 44B - inclusion of service tax - Whether statutory due paid to be included in the gross receipts for computation of profit u/s 44B of the Income Tax Act – Held that:- Issue decided in favour of the assessee holding that the amount of service tax, being in the nature of statutory payment which does not involve any element of profit, cannot be included in the gross receipts for the purpose of computing the presumptive income of the assessee under section 44B – Decided in favor of Assessee. Levy of interest u/s 234B of the Income Tax Act – Held that:- Assessee in the present case is admittedly a Non Resident in India and its entire income is liable for deduction of Tax at source. As held by the Hon'ble Bombay High Court in the case of DIT (International Taxation) v. NGC Network Asia LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT], when a duty is cast upon payer to pay tax at source, on its failure to do so, no interest can be imposed upon payee Assessee under section 234B - Following the decision of Hon'ble Jurisdictional High Court, in the present case, interest under section 234B cannot be imposed on the Assessee on failure of payer to deduct tax at source from the payments made to the Assessee – Decided in favor of Assessee.
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