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7. The Director of Income Tax (International Taxation) Vs. Star Cruises (India) P. Ltd. (2026) 188 taxmann.com 1068 (SC)
Special provision for computing profits and gains of shipping business other than cruise shipping in case of non-residents - Section 44B - The meaning of the word 'carriage' cannot be restricted to mean the carriage from Port A to Port B - The possibility of passengers de-boarding at intermediate ports was not taken into account by the Assessing Officer - On a voyage, the provision of ancillary services did not take away from the meaning of 'carriage' as per Section 44B of the Act.
The Superstar Libra Ltd. (for short, 'SLL'), a non-resident entity, operated a cruise known as "Superstar Libra" in India. The Assessee (Star Cruises (India) Pvt. Limited), the agent of SLL, was responsible for conducting the cruise and collecting revenue from the sale of cruise packages and shore excursions in India.
The assessee computed the income accruing in favour of SLL by applying Section 44B of the Act and estimated the income at 7.5% of the cruise fare collected by the assessee.
The Assessing Officer, vide order dated 30.03.2007, held that Section 44B of the Act is applicable in cases of carriage of goods, passengers, etc, and, in the view of the Assessing Offi
