Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 743 - AT - Income TaxComputation of profit earned by non-resident from Shipping business u/s 44B of the Income Tax Act Held that:- Demurrage charges and handling charges are specifically included in the aggregate amount as prescribed under sub-section 2 - Amount received or receivable/paid or payable to the assessee on account of carriage of passengers etc. or goods shipped would be part of such amount for computation of profit and gains u/s 44B - Theory of element of profit would not apply to the aggregate amount as specified in sub-section (2) of section 44B. Moreover service tax is incidental to the transactions of carriage of passengers etc. and goods shipped and the amount paid or payable to and received or receivable by the assessee on account of service tax is very much part of the amount received on account of the business of shipping. According to the normal commercial practice, levy of tax on sale of goods or service is reflected in the bills either as merged in the price or being shown separately. Therefore, the amount received on account of service tax as part of the price of carriage/shipped service is very much a trading/business receipt and would be part of the aggregate amount for presumptive profit and gain to be determined u/s 44B - Service tax collected by the assessee would form part and partial of the aggregate amount as specified under sub-section 2 of section 44B for the purpose of determining the profit and gain under this section Decided against the Assessee. Interest u/s 234B of the Income Tax Act Held that:- This issue is covered by the decision of Hon'ble Jurisdiction High Court in case of DIT (International Taxation) v. NGC Network Asia LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT] in which the Hon'ble High Court has held that when a duty is cast on the payer to deduct tax at source then on failure of the payer to do so, no interest can be charges from the payee u/s 234 Decided in favor of Assessee.
|