Hanjin Shipping Company v. Dy. DIT [ITA No. 5277/Mum/2014, dt. 13-5-2016] : 2016 TaxPub(DT) 2539 (Mum-Trib)

Whether service tax forms part of sums received under section 44B for shipping business of a non-resident

Facts:

Assessee non-resident shipping line had received service tax a statutory levy on its services in India. Assessing officer held it to be part of the presumptive taxable receipts under section 44B which was upheld by the Commissioner (Appeals). On further appeal:

Held in favour of the assessee that service tax is a statutory receipt collected by virtue of law thus does not form part of receipts taxable under section 44B.

"Islamic Republic of Iran Shipping Lines v. Dy. DIT" 11 taxman.com 349, assessees own case of assessment year 2007-08/2008-09 & "DIT v. Mitchell Drilling International Pvt. Ltd." (2015) 62 Taxman.com 24 (Delhi) upheld.

Similar views have been held for section 44BB as well applying Mitchell drilling case in - Flash mailer 310 IT v. R&B Falcon (A) Pty Ltd./ITA No. 1048/Del/2014/assessment year 2010-11/Del ITAT/Dated 29-4-2016