12 principles governing section 44BB culled out from various judgments

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 provi...