Orient Overseas Container Line Limited Vs DCIT (International Taxation) (ITAT Mumbai)
The appeal was filed against the final assessment order dated 12.08.2025 passed under sections 143(3) read with 144C(13) of the Income Tax Act pursuant to directions of the Dispute Resolution Panel (DRP) for Assessment Year 2023–24.
The assessee, a Hong Kong-based company engaged in the business of operating ships in international traffic, declared its income under the presumptive taxation scheme of section 44B. Its revenue consisted of freight income and ancillary charges such as terminal handling and demurrage.
The principal issue before the Tribunal was whether GST collected on ancillary charges should be included in gross receipts for computing presumptive income under section 44B. During assessment proceedings, the Assessing Officer (AO) noted that GST collected by the assessee had not been included in the computation of income. The AO treated GST as part of aggregate receipts and made an addition of Rs. 8.34 crore. This approach was upheld by the DRP.
The assessee contended that GST is a statutory levy collected on behalf of the government and cannot be regarded as income or “charges” for carriage. It relied on earlier decisions of the Tribunal in its own case for multiple assessment years where similar additions had been deleted.
