1992 (7) TMI 108

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..... r section 44B of the Income-tax Act, 1961 (hereinafter called " the Act "). During the relevant period assessee paid " SLOT FEE " amounting to Rs. 22,88,462. It was claimed to be deductible from the total income. The ITO disallowed the claim on the ground that provisions contained in sections 28 to 43A are not relevant for determining the profits of shipping business of a non-resident company. Section 44B of the Act prescribes a special provision, for computing the income exigible to tax. This special provision overrides the general provision. Deduction as claimed by the assessee is not admissible in terms of section 44B of the Act. The CIT (Appeals) confirmed the finding of the ITO. 3. Shri S. E. Dastur, ld. counsel for the assessee a .....

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..... of goods shipped at any Indian port. There is no provision for the deduction of slot fee. According to Shri Bajpai, the case of the assessee can be compared with that of a contractor who engages a sub-contractor for executing a project. The amount paid to the sub-contractor is the business expenditure of the contractor. Similarly amount paid to the feeder ship is, albeit, expenditure of the assessee-company, but not deductible in view of the special provision contained under section 44B of the Act. The tax was charged in consonance with the scheme of the Act. There is no double taxation. 5. We have heard the rival submissions in the light of material placed before us. The Random House Dictionary, defines the word " SLOT " as a narrow, e .....

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..... fy the procedure. Section 44B prescribes that the profits and gains of a non-resident from the business of operation of ships will be taken at 7.5 per cent of the aggregate of the following amounts, namely :-- (i) the amount paid or payable to the assessee or to any person on his behalf on account of carriage of passengers, live stock, mail or goods shipped at any port in India ; and (ii) the amount received or deemed to be received in India by or on behalf of the assessee on account of the carriage of passengers, live stock, mail or goods shipped at any port outside India. Prior to coming into force of section 44B of the Act as well as amendments to section 172 made by the Finance Act, 1975, the taxable profits of foreign shipping ent .....

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