Case Law Details
Swiwar Offshore Pte. Ltd. Vs. Addl. DIT (ITAT Mumbai)
Some of the general principles, governing the section, culled out from various judgments can be summarized as under:
i. Once section 44BB is applied, two conclusions become inescapable. The first conclusion is that 10% of the receipts by the foreign resident is chargeable to tax and the other conclusion is that 90% of the receipts of that foreign resident as well as receipts or gains other than those mentioned in the section is not chargeable to tax.
ii. It would be logically fallacious to use the taxability of 10% which is expressly provided in section 44BB and to pass over or fail to recognize the exemption from tax as to the balance 90% of the receipts and 100% of other profits and gains,which is also provided for in section 44BB by necessary and inescapable conclusion.
iii. The section provides for taxation with reference to pre- ordained criteria which are mention -ed in provision itself-amounts received or payable to an asses see-non-resident, whether in India or outside India, had to be included for purpose of calculating income u/s. 44 BB.
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