9911796707
TMI Blog1987 (7) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... hough a similar point has been decided against the assessee by the Tribunal for the assessment years 1975-76 and 1976-77 by order in Anchor Line Ltd. v. ITO [1984] 10 ITD 63 (Bom.) and for asst. yrs. 1977-78 to 1979-80 in I. T. A. No. 3151 (Bom.) / 81, 810 (Bom.) / 1982 and 4433 (Bom.) / 1982 dated 29-4-1985 following the decision in Anchor Line Ltd.'s case the said decision requires reconsideration in view of later decision of the Patna High Court in the case of CIT v. Sriram Agrawal [1986] 161 ITR 302. 3. The assessee is a non-resident shipping company with its head office in the United Kingdom. It was being assessed right up to the assessment year 1975-76 in accordance with the procedure laid down in Board's Circular No. 7(C) No. 27(17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have been withdrawn by implication. The provisions of section 44B are applicable to all non-resident assessees engaged in the business of operation of ships. It does not make any distinction between a British company and any other non-resident company. That distinction has been provided in Circular No. 7 of 1942. But since special provision has been made for computation of profits and gains of an assessee, who was a non-resident and engaged in the business of operation of ships, provisions of earlier circular which contained directions of an altogether different nature must be deemed to have been superseded. It was also observed by the Tribunal that the Central Board of Direct Taxes issued a circular on 23-6-1975 containing elaborate dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Circular cannot alter the position of law. He also relied upon the decision in the case of ITO v. A. V. Thomas and company (1986) 160 ITR 818 (Ker.) wherein, it has been held that the statutory provisions should be construed without any aid of the circular. Reliance was also placed on the decision of the Madras High Court in the case of CIT v. L. G. Rammurthi (1977) 110 ITR 453 and contended that facts being similar the Tribunal should not take a contrary view. 5. We have heard the parties. The facts in the case on which heavy reliance is placed by the learned counsel for the assessee are that the assessee filed an estimate of advance tax, but the same was not paid. The Income-tax Officer, after issuing a show cause notice imposed penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. In this case the decision in the case of State Bank of Travancore relied upon by the learned Departmental Representative has also been considered. 6. We are concerned in this case with the interpretation of section 44B, which reads as under :- "44B (1) Notwithstanding anything to the contrary contained in section 28 to 43A, in the case of an assessee, being a non-resident engaged in the business of operation of ships, a sum equal to seven and a half percent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head 'Profits and gains of business or profession". (2) The amounts referred to in sub-section (1) shall be the following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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