9911796707
TMI Blog1991 (4) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... tire receipts of Rs. 31,63,688 from detention/demurrage as income of the assessee and therefrom allowed deduction of 5 per cent as expenses on estimate basis. Thus, out of total receipts from detention/demurrage of Rs, 31,63,688, Rs. 30,05,504 was taken as income of the assessee. This was challenged by the assessee-company in appeal before the C.I.T. (Appeals). It was contended by the assessee before the C.I.T. (Appeals) that the detention demurrage charges were part and parcel of the carriage of goods within the meaning of section 44B and, therefore, the Assessing Officer should not have taxed the entire detention/demurrage charges which were received by the assessee-company but should have taxed only 7.5 per cent thereof. Such stand of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partmental Representative argued, cannot now take a stand that it could not be even treated as forming part of the receipts on account of carriage. 4. Learned counsel for the assessee, on the other hand, contended that in view of specific provision contained in section 44B no part of any income whatsoever it may be except the amount on account of carriage, is taxable under the Act. He made reference to sections 28 and 29 of the Act. Section 28 makes mention of the income chargeable to Income-tax under the head " profits and gains of business or profession ". According to section 29, the income referred to in section 28 shall be computed in accordance with the provisions contained in sections 30 to 43C. He also made reference to the non o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x is the aggregate if only those amounts as are specified in section 44B(2). Section 44B(2) must, therefore, be construed strictly. It includes only the receipts on account of the carriage of passengers and goods etc. It does not include any other receipt. In the case of CIT v. Pestonji Bhicajee [1977] 107 ITR 837 (Guj.) the question arose before the Hon'ble Gujarat High Court as to whether " dead freight " could be treated as freight. Dead freight is an agreed sum to be paid in respect of space not filled according to charter, or damages provided for by a charter, in the event of the freighter not loading a full cargo. It has been held by the High Court that " dead freight " cannot be treated as payment made on account of carriage of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R 647 (651-2)---- " It seems to me, however, that the order of the Commissioner rejecting the previous applications, on the mere ground that the petitioner had shown the income in his return, is erroneous. The Commissioner was bound to apply his mind to the question whether the petitioner was taxable on that income. The Income-tax Officer is entitled under section 23(1) to make an assessment on the basis of the return if he is satisfied, without requiring the presence of the assessee or the production of evidence in support of the return, that the return is correct and complete. But it may be that the assessee may have committed a mistake in treating a certain receipt as taxable. The mere circumstance that he has shown that receipt as inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
