https://www.taxtmi.com/caselaws?id=23056 The court ruled that demurrage paid to non-resident shipowners or charterers is not taxable under sections 44B and 172 of the Income-tax Act, 1961. It held that demurrage does not constitute income from the carriage of goods under these sections. The court also found circular instructions by the Reserve Bank of India, requiring income-tax clearance for demurrage payments, to be without legal authority. The petitions were disposed of, directing parties to bear their own costs and urging respondents not to impose undue hardship on exporters. en-us Fri, 27 Jul 1990 00:00:00 +0530 Mon, 05 Dec 2016 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23056 The court ruled that demurrage paid to non-resident shipowners or charterers is not taxable under sections 44B and 172 of the Income-tax Act, 1961. It held that demurrage does not constitute income from the carriage of goods under these sections. The court also found circular instructions by the Reserve Bank of India, requiring income-tax clearance for demurrage payments, to be without legal authority. The petitions were disposed of, directing parties to bear their own costs and urging respondents not to impose undue hardship on exporters. Case-Laws Income Tax Fri, 27 Jul 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23056