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2009 (12) TMI 96 - MADRAS HIGH COURTApplicability of Section 44B – Demurrage earned – chargeability - The assessee, a non resident company filed its return of income relating to the assessment year 1993-94 on 31.12.1993 admitting an income of Rs.4,74,83,480/-. The return has been processed under section 143(1)(a) of the Act and intimation to that effect was sent to the assessee on 31.01.1994. Consequently notice under section 143(2) of the Act was issued to the assessee posting the case for hearing. The assessee has claimed that demurrage earned is not taxable. – held that - Section 44B of the Act, which is a special provision for computing profits and gains of shipping business in the case of non-residents, under the Explanation that was added by the Finance Act, 1997 with effect from April 1, 1976, expressly provides that demurrage charges or handling charges or any other amount of similar nature shall be regarded as the part of the amount paid or payable to the person engaged in the business of operation of ships on account of the carriage of passengers, livestock, mail or goods shipped at any port in India – decided in favor of revenue.
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