Service tax collected as a statutory liability is excluded from gross receipts for presumptive taxation under section 44B.

Service tax collected by a shipping company on behalf of the Government is not part of gross receipts for presumptive taxation under section 44B of the Income-tax Act, because it is a statutory liability and does not carry any profit element. The Tribunal followed its earlier view in the assessee's own case, noting no change in law or facts and relying on supporting Delhi HC authority. On that basis, service tax remitted to the Government was excluded from gross receipts for computing presumptive income under section 44B.

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Issues: Whether service tax collected by a shipping company is includible in the gross receipts for computation of presumptive income under section 44B of the Income-tax Act, 1961.

Analysis: The issue was covered by the assessee's own earlier years, where the Tribunal had held that service tax is collected on behalf of the Government as a statutory liability and does not contain any profit element. The Tribunal also noted that, in the absence of any change in law or facts and in view of the persuasive support from the Delhi High Court, the earlier view taken in the assessee's case should be followed. On that basis, service tax could not form part of the gross receipts for computing presumptive income under section 44B.

Conclusion: Service tax collected and remitted to the Government is not includible in gross receipts for computation under section 44B; the issue is decided in favour of the assessee.

Ratio Decidendi: Amounts collected merely as statutory dues on behalf of the Government, without any profit element, cannot be treated as part of gross receipts for presumptive taxation under section 44B.

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