Commissioner of Income-tax Vs. Japan Lines Ltd. (Navix Lines Ltd.) - Court Judgment |
| SooperKanoon Citation | sooperkanoon.com/834812 |
| Subject | Direct Taxation |
| Court | Chennai High Court |
| Decided On | Sep-18-2002 |
| Case Number | T.C. Nos. 380 to 382 of 1997 |
| Judge | R. Jayasimha Babu and ;K. Raviraja Pandian, JJ. |
| Reported in | [2003]260ITR656(Mad) |
| Acts | Income Tax Act, 1961 - Sections 44B; Finance Act, 1997 |
| Appellant | Commissioner of Income-tax |
| Respondent | Japan Lines Ltd. (Navix Lines Ltd.) |
| Appellant Advocate | T. Ravikumar, Adv. |
| Respondent Advocate | P.P.S. Janardhana Raja, Adv. |
Excerpt:
.....act, 1948.
sections 5(2) & 67; suo motu revisional powers held, on a bare reading of the provisions of section 5(2) of the act, it is clear that the power conferred on the director by section 5(2) to cancel or revise any of the orders, acts or proceedings of the settlement officer is very wide. in the first place, the director need not necessarily be moved by any party in that behalf, and the power could be exercised either on an application by an aggrieved person or suo motu. for example, if the director comes to know that contrary to the scheme of the act or due to misrepresentation or fraud played, a patta had been granted to a person under the relevant provisions of the act, then to set right that mistake, the director should be enabled to exercise his power so as to..........the business of operation of ships on account of the carriage of passengers, livestock, mail or goods shipped at any port in india. in this case, as the amount of demurrage was admittedly received in india, the amended provision is clearly applicable. the question is, therefore, answered against the assessee and in favour of the revenue.
Judgment:R. Jayasimha Babu, J.
1. The question referred to us, at the instance of the Revenue, for our consideration, is as follows :
'Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that demurrage charges received by the assessee are not includible in the assessee's total income and accordingly in allowing the appeal filed by the assessee ?'
2. The assessment years are 1983-84, 1984-85 and 1987-88.
3. Subsequent to the date of the Tribunal's order the applicable provision of the Income-tax Act was amended by the Finance Act, 1997, with effect from April 1, 1976, thereby making the amended law applicable for these assessment years as well. Section 44B 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, 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. In this case, as the amount of demurrage was admittedly received in India, the amended provision is clearly applicable. The question is, therefore, answered against the assessee and in favour of the Revenue.