ITAT upholds non-accrual of income on cruise tickets booked by Indian agent. Revenue's appeal dismissed.

The Appellate Tribunal ITAT MUMBAI upheld the order of the CIT(A) regarding the non-accrual of income to the assessee in India on cruise tickets booked by its Indian agent, based on precedents and similar cases. The Revenue's appeal against the CIT(A)'s decision was dismissed.

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Issues involved:
The judgment involves the issue of whether income accrued to the assessee in India on account of cruise tickets booked by its Indian agent.

Summary:

Issue 1: Income accrual on cruise tickets booked by Indian agent

The appeal by the Revenue was against the order of the CIT(A) directing that no income accrued or arose to the assessee in India on account of cruise tickets booked by its Indian agent. The assessee, engaged in travel and tour services, had an agreement with a foreign company for canvassing their cruise in India. The Assessing Officer estimated income accruing towards the operations carried out in India at 5% of the cruise collections remitted from India. The CIT(A) accepted the assessee's contention based on a previous order u/s.195 for the instant year. The Tribunal, in similar cases, had dismissed the Revenue's appeals, and in this case, the Tribunal upheld the impugned order based on precedents.

In conclusion, the Appellate Tribunal ITAT MUMBAI upheld the order of the CIT(A) regarding the non-accrual of income to the assessee in India on cruise tickets booked by its Indian agent, based on precedents and similar cases.

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