Union of India v. Gosalia Shipping P. Ltd.

113 ITR 307Supreme Court of India1978#3237 most cited

What is Union of India v. Gosalia Shipping P. Ltd. authority for?

Profits of non-residents from occasional shipping business are subject to a special levy and recovery of tax under Section 172 of the Income Tax Act. A time charter party is considered a letting of the ship when control over its working and navigation is transferred.

37

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2025.

Also referred to as

Union of India v. Gosalia Shipping · Section 172 · occasional shipping business · non-resident · profits · time charter party · letting the ship · tax liability

Sections most often in play

Section 101Section 102Section 124(3)Section 132Section 132ASection 139(1)Section 142(1)Section 143

Issues it is cited on

non-residenttransferprevious yearpersoncompanyindiabusinessdocumentinterestsection 143(3)total income

Judgments citing Union of India v. Gosalia Shipping P. Ltd.

ACIT Cir 11(3)(1), Mumbai vs. Total Oil India P. Ltd, Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeals of the revenue are dismissed

ITA 2128/MUM/2018[2013-14]Status: DisposedITAT Mumbai10 Jan 2020AY 2013-14

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Niraj ShethFor Respondent: Shri Avaneesh Tiwari
Section 195Section 234DSection 40Section 9(1)(vii)

…at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in SRP 66/79 ITXA989.15.doc the case of Union of India vs. Gosalia Shipping (PVT.) Ltd. reported in (1978) 3 SCC 23 . Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- "..... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non- residents from occasional shipping business". It creates a tax liability in r…

Asst CIT Range 11(3)(1), Mumbai vs. Total Oil India P.Ltd, Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeals of the revenue are dismissed

ITA 2127/MUM/2018[2014-15]Status: DisposedITAT Mumbai10 Jan 2020AY 2014-15

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Niraj ShethFor Respondent: Shri Avaneesh Tiwari
Section 195Section 234DSection 40Section 9(1)(vii)

…at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in SRP 66/79 ITXA989.15.doc the case of Union of India vs. Gosalia Shipping (PVT.) Ltd. reported in (1978) 3 SCC 23 . Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- "..... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non- residents from occasional shipping business". It creates a tax liability in r…

Total Oil India P. Ltd, Mumbai vs. ACIT Cir 11(3)(1), Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeals of the revenue are dismissed

ITA 1878/MUM/2018[2014-15]Status: DisposedITAT Mumbai10 Jan 2020AY 2014-15

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Niraj ShethFor Respondent: Shri Avaneesh Tiwari
Section 195Section 234DSection 40Section 9(1)(vii)

…at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in SRP 66/79 ITXA989.15.doc the case of Union of India vs. Gosalia Shipping (PVT.) Ltd. reported in (1978) 3 SCC 23 . Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- "..... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non- residents from occasional shipping business". It creates a tax liability in r…

Total Oil India P. Ltd, Mumbai vs. ACIT Cir 11(3)(1), Mumbai

In the result, appeals of the assessee are partly allowed as indicated above and appeals of the revenue are dismissed

ITA 1877/MUM/2018[2013-14]Status: DisposedITAT Mumbai10 Jan 2020AY 2013-14

Bench: Shri C.N. Prasad, Hon'Ble & Shri Manoj Kumar Aggarwal, Hon'Ble

For Appellant: Shri Niraj ShethFor Respondent: Shri Avaneesh Tiwari
Section 195Section 234DSection 40Section 9(1)(vii)

…at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in SRP 66/79 ITXA989.15.doc the case of Union of India vs. Gosalia Shipping (PVT.) Ltd. reported in (1978) 3 SCC 23 . Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- "..... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non- residents from occasional shipping business". It creates a tax liability in r…

ACIT 11(3)(1), Mumbai vs. Total Oil India P.Ltd, Mumbai

ITA 4300/MUM/2016[2010-11]Status: DisposedITAT Mumbai09 Jul 2019AY 2010-11

Bench: Shri G. S. Pannu, Vp & Shri Amarjit Singh, Jm

For Appellant: Shri Niraj ShethFor Respondent: Shri S. Usmani (DR)
Section 143(1)Section 143(2)Section 195Section 40Section 9(1)(vi)Section 9(1)(vii)

…at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in SRP 66/79 ITXA989.15.doc the case of Union of India vs. Gosalia Shipping (PVT.) Ltd. reported in (1978) 3 SCC 23 . Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- "..... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non- residents from occasional shipping business". It creates a tax liability in r…

Total Oil India P.Ltd, Mumbai vs. Addl CIT RG 8(3), Mumbai

ITA 4135/MUM/2016[2010-11]Status: DisposedITAT Mumbai09 Jul 2019AY 2010-11

Bench: Shri G. S. Pannu, Vp & Shri Amarjit Singh, Jm

For Appellant: Shri Niraj ShethFor Respondent: Shri S. Usmani (DR)
Section 143(1)Section 143(2)Section 195Section 40Section 9(1)(vi)Section 9(1)(vii)

…at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in SRP 66/79 ITXA989.15.doc the case of Union of India vs. Gosalia Shipping (PVT.) Ltd. reported in (1978) 3 SCC 23 . Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- "..... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non- residents from occasional shipping business". It creates a tax liability in r…

DDIT, Dehradun vs. M/S. Tidewater Marine Internatioanl Inc., New Delhi

In the result, appeal of the Revenue is dismissed

ITA 6166/DEL/2014[2011-12]Status: DisposedITAT Delhi31 Oct 2017AY 2011-12

Bench: Sh. Bhavnesh Saini & Sh. O.P. Kantassessment Year: 2011-12 Vs. M/S. Ddit, International Taxation, Tidewater Marine International Inc., 17Th Floor, Aayakar Bhawan, 13A-Subhash Road, Dehradun Jawahar Vyapar Bhawan, Tolstoys Marg, New Delhi Pan : Aaact7573Q (Appellant) (Respondent) Appellant By Sh. Gaurav Dudeja, Sr.Dr Respondent By Sh. Amit Arora, Ca Date Of Hearing 31.10.2017 Date Of Pronouncement 31.10.2017 Order Per O.P. Kant, A.M.:

Section 192Section 2Section 234BSection 44BSection 44DSection 9

…cover in the definition of plant which is also not in dispute. 23. Coordinate bench of ITAT in SBS Marine Limited v ADIT [ITA 07/Del/2012 dated 13.2.2015] after considering the decisions of Hon’ble supreme court in case of UOI V Gosalia Shipping Pvt. Limited [113 ITR 307] & Poomphur Shipping corporation Limited V ITO [360 ITR 257] , both of which are heavily relied by the revenue has decided this issue. Further this decision of Coordinate bench has also been upheld by Hon’ble Uttarakhand High court vide order dated 6.8.2015 in ITA No 36/2015 applying judgment of Honourable Supreme court in case of Oil And natural…

ACIT 17(1), Mumbai vs. Elve Corporation, Mumbai

ITA 3565/MUM/2015[2011-12]Status: DisposedITAT Mumbai25 Apr 2017AY 2011-12

Bench: Shri Joginder Singh & Shri Ramit Kochar

Section 195Section 195(2)Section 40

…to deduct the tax thereon at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in the case of Union of India v. Gosalia Shipping (PVT.) Ltd. reported in [1978] 3 SCC 23. Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- ".... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non residents from occasional shipping business". It creates a tax liability in resp…

ACIT 17(1), Mumbai vs. Elve Corporation, Mumbai

ITA 3564/MUM/2015[2010-11]Status: DisposedITAT Mumbai25 Apr 2017AY 2010-11

Bench: Shri Joginder Singh & Shri Ramit Kochar

Section 195Section 195(2)Section 40

…to deduct the tax thereon at the rates in force. 50. The view that we are taking is based on the enunciation and exposition of law by the Hon'ble Supreme Court of India, firstly in the case of Union of India v. Gosalia Shipping (PVT.) Ltd. reported in [1978] 3 SCC 23. Insofar as section 172 of the IT Act as it stood then, its ambit and scope, the Hon'ble Supreme Court of India held as under:- ".... 3. Section 172 occurs in Chapter XV which is entitled "Liability in special cases" and the sub-heading of the section is "Profits of non residents from occasional shipping business". It creates a tax liability in resp…

B J Services Co. Middle East Ltd., Dehradun vs. ADIT(Intl. Taxation), Dehradun

In the result, all the three appeals of the assessee are partly allowed for

ITA 3889/DEL/2010[2007-08]Status: DisposedITAT Delhi09 Dec 2016AY 2007-08

Bench: : Shri Sunil Kumar Yadav & Shri L.P. Sahu

For Appellant: Sh. Amil Arora, C.AFor Respondent: Sh. Anuj Arora, CIT/DR
Section 143(3)Section 144CSection 234BSection 271BSection 44BSection 9(1)(vii)

…44DA, vide Finance Act 2010, though stated to be effective from assessment year 2011-12 must be treated as clarificatory in nature. A reference is made to the decision of Hon'ble Supreme Court, in the case of Union of India v. Gosalia Shipping (P.) Ltd [1978] 113 ITR 307 for the proposition that when payment is made to a shipping company for time charter, its payment for hire of shipment and not for the purpose of carrying goods, and by the same logic, when payment is made by the first leg contractor to the supplier of equipment or personnel, the payment is for such equipment or personnel and not for the purposes…

ADIT, Dehradun vs. M/S. Halliburton Offshore Services Inc., Dehradun

ITA 1332/DEL/2012[2005-06]Status: DisposedITAT Delhi30 Jun 2016AY 2005-06

Bench: Shri I.C.Sudhir & Shri Prashant Maharishiadit, Halliburton Offshore Services International Taxation, Inc. , Vs. 13-A,Subhash Road, C/O. Nangia & Company, Ca, Aayakar Bhawan, 75/7, Rajpur Road, Dehradun Dehradun Pan:Aaach5154M (Appellant) (Respondent) Halliburton Offshore Services Addl. Cit, Inc. , International Taxation, Vs. C/O. Nangia & Company, Ca, Subhash Road, Suite-4A, Plaza M-6, Jasola, Dehradun New Delhi Pan:Aaach5154M (Appellant) (Respondent) Halliburton Offshore Services Inc. , Adit, C/O. Nangia & Company, Ca, International Taxation, Vs. Suite-4A, Plaza M-6, Jasola, 13-A,Subhash Road, New Delhi Aayakar Bhawan, Pan:Aaach5154M Dehradun (Appellant) (Respondent) Halliburton Offshore Services Inc. Vs Ddit (International Taxation)

Section 144CSection 44Section 44BSection 9

…44DA, vide Finance Act 2010, though stated to be effective from assessment year 2011-12 must be treated as clarificatory in nature. A reference is made to the decision of Hon'ble Supreme Court, in the case of Union of India v. Gosalia Shipping (P.) Ltd [1978] 113 ITR 307 for the proposition that when payment is made to a shipping company for time charter, its payment for hire of shipment and not for the purpose of carrying goods, and by the same logic, when payment is made by the first leg contractor to the supplier of equipment or personnel, the payment is for such equipment or personnel and not for the purposes…

ADIT, Dehradun vs. M/S. Tidewater Marine International Inc., Dehradun

ITA 5927/DEL/2013[2010-11]Status: DisposedITAT Delhi29 Jun 2016AY 2010-11

Bench: Shri N.K. Saini & Shri Kuldip Singh

For Appellant: Shri Amit Arora, CAFor Respondent: Ms. Anupama Anand, CIT DR
Section 44BSection 44DSection 5Section 9Section 9(1)(vi)Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘D’ : NEW DELHI) BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.5864/Del./2013 (ASSESSMENT YEAR : 2010-11) Tidewater Marine International Inc., vs. ADIT, C/o Nangia & Company, International Taxation, Suite 4A, Plaza M – 6, New Delhi. Jasola, New Delhi – 110 025. (PAN : AAACT7573Q) ITA No.5927/Del./2013 (ASSESSMENT YEAR : 2010-11) ADIT, vs. Tidewater Marine International Inc., International Taxation, C/o Nangia & Company, New Delhi. Suite 4A, Plaza M – 6, Jasola, New Delhi – 110 025. (PAN : AAACT7573Q) (APPELLANT) (RESP…

Tidewater Marine International Inc, New Delhi vs. ADIT, Dehradun

ITA 5864/DEL/2013[2010-11]Status: DisposedITAT Delhi29 Jun 2016AY 2010-11

Bench: Shri N.K. Saini & Shri Kuldip Singh

For Appellant: Shri Amit Arora, CAFor Respondent: Ms. Anupama Anand, CIT DR
Section 44BSection 44DSection 5Section 9Section 9(1)(vi)Section 9(1)(vii)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘D’ : NEW DELHI) BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.5864/Del./2013 (ASSESSMENT YEAR : 2010-11) Tidewater Marine International Inc., vs. ADIT, C/o Nangia & Company, International Taxation, Suite 4A, Plaza M – 6, New Delhi. Jasola, New Delhi – 110 025. (PAN : AAACT7573Q) ITA No.5927/Del./2013 (ASSESSMENT YEAR : 2010-11) ADIT, vs. Tidewater Marine International Inc., International Taxation, C/o Nangia & Company, New Delhi. Suite 4A, Plaza M – 6, Jasola, New Delhi – 110 025. (PAN : AAACT7573Q) (APPELLANT) (RESP…

ADIT, Dehradun vs. M/S. Fugro Geoteam As, Dehradun

In the result the appeal of the Revenue is dismissed and the cross

ITA 5928/DEL/2013[2010-11]Status: DisposedITAT Delhi20 Nov 2015AY 2010-11

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

For Appellant: S/Shri Amit Arora & Suraj Nangia, CAsFor Respondent: Shri Anuj Arora, CIT DR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 3

…activities specified in section 44BB itself and being second leg contractors they are not eligible under section 44BB. 29. The Revenue has heavily relied on the judgment of the Hon'ble Supreme Court of India in Union of India vs. Gosalia Shipping Pvt. Ltd., 113 ITR 307 = 2002- TI/-40-SC-L8-INTL and the judgment of the Hon'ble Madras High Court in Poompuhar Shipping Corporation Ltd. vs. ITO, 360 ITR 257 = 2013-TII-37-HC-MAD-INTL in contending that the contracts entered into by the assessee with its customers are in the nature of a contract for hire of equipment. In Gosalia's case, the Hon'ble Supreme Court had t…

M/S. Flex Engineering Ltd vs. Commnr. of Central Excise, U.P

The appeals are allowed and the

C.A. No.-007152-007152 - 2004Supreme Court13 Jan 2012
Section 35H

…of India v. Delhi Cloth & General Mills Co. Ltd.18 and Cadila Laboratories (P) Ltd. v. CCE19.” 20. Thus, if a product is not saleable, it will not be marketable and consequently the process of manufacture would not be 16 (2005) 4 SCC 337. 17 (1995) 3 SCC 23 18 (1997) 5 SCC 767 19 (2003) 4 SCC 12 2 held to be complete and duty of excise would not be leviable on it. The corollary to the above is that till the time the step of manufacture continues, all the goods used in relation to it will be considered as inputs and thus, entitled to Modvat credit under Rule 57A of the Rules. In the prese…

Commissioner of Income Tax vs. Agricultural Market Committee

ITTA/227/2011HC Telangana27 Jun 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

Madley Pharmaceuticals Ltd vs. Commnr of Central Excise&Customs, Daman

C.A. No.-003626-003626 - 2005Supreme Court14 Jan 2011
Section 18Section 27Section 35

…ndition in which it emerges. Marketable means saleable. The test of classification is, how are the goods known in the market. These tests have been laid down by this Court in a number of judgments including Moti 15 Laminates (P) Ltd. v. CCE (1995) 3 SCC 23, Union of India v. Delhi Cloth & General Mills Co. Ltd. (1997) 5 SCC 767 and Cadila Laboratories (P) Ltd. v. CCE (2003) 4 SCC 12” 21) In Gujarat Narmada Valley Fertilizer Co. Ltd. vs. Collector of Excise and Customs, (2005) 7 SCC 94, it was held that unless the product is capable of being marketed and is known to those who are in the mar…