Service tax collected from customers not to be added while determining presumptive shipping income under section 44B

Recently Mumbai Bench of the Income-tax Appellate in the case of Islamic Republic of Iran Shipping Lines Vs. DCIT [I.T.A. No. 8845/Mum/2010 dated 20 April, 2011] held that service tax collected from customers on behalf of the Government cannot be included in the total receipts while determining its presumptive income under section 44B of the Income-tax Act, 1961. Facts •  Islamic Republic of Iran Shipping Lines (“the assessee”), engaged in operation of ships, had filed its tax return for assessment year 2007-08, offering income as per the provisions of section 44B read with sect...