IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “I” BENCH : MUMBAI BEFORE SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER Assessment Year : 2023-24 Oceaneering International Deputy Commissioner of GmbH, Income Tax

302, Delphi, C Wing, vs. (International Taxation), Hiranandani Business Park, Range-3(2)(2), Orchard Avenue, Powai, Room No. x, Mumbai-400076. G Block, BKC, PAN : AAACO6496K Gilban Area, Bandra Kurla Complex, Bandra East, Mumbai-400051.

(Appellant) (Respondent)

For Assessee : Shri A.K. Jawadwala For Revenue : Shri Krishna Kumar, Sr.DR Date of Hearing : 09-12-2025 Date of Pronouncement : 12-12-2025

O R D E R

PER VIKRAM SINGH YADAV, A.M :

This is an appeal filed by assessee against the order of the Assessing Officer (AO) passed u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961 („the Act‟), dated 19-08-2025, consequent to the directions given by the Dispute Resolution Panel [DRP-2], Mumbai-2, dated 02-07-2025, pertaining to Assessment Year (AY) 2023-24.

2. The limited issue under consideration relates to whether Goods and Service Tax (GST) is to be included while computing the income of the assessee in terms of provisions of section 44BB of the Act.

3. During the course of hearing, both the parties fairly submitted that it is a recurring issue and the matter has been decided in favour of the assessee and covered by earlier decisions of the Tribunal.

4. Our reference was drawn to the decision of the Coordinate Bench for A.Y. 2021-22 (ITA No. 4670/Mum/2023 dated 21/03/2025) wherein the relevant findings read as under:

“10. We have heard the rival contentions and perused the materials available on record. We find that the Coordinate Bench while considering a similar issue of inclusion of GST for the purposes of presumptive taxation u/s. 44B of the Act in the case of Orient Overseas Container Line Limited (Supra) has exhaustedly examined the matter and the relevant findings therein read as under:

“8. We have heard both the parties at length, perused the relevant materials referred to before us. The controversy before is whether GST is to be included while computing the deemed profit u/s 44B. Section 44B is a special provision for computing profits and gains of shipping business in the case of non-residents. Prior to insertion of Section 44B, taxable profits of foreign shipping enterprises were determined by suitably apportioning their global profits between their Indian business and foreign business or on the basis of "voyage accounts" which led to difficult and complicated issues in assessments. With a view to simplifying and rationalizing the assessments in such cases, Section 44B was inserted for computing profits and gains of shipping business in the case of non- residents at 7.5% of specified amounts. Insertion of Section 44B substituted computation as per normal provisions in which both debit of expenses and credit of income were considered. At this point, it will be relevant to incorporate the relevant provision of Section 44B of the Act.

1) Notwithstanding anything to the contrary contained in sections 28 to 43, in the case of an assessee, being a nonresident, engaged in the business of operation of ships, a sum equal to seven and a half per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession"

2) The amounts referred to in sub-section (1) shall be the following, namely:- (i) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the carriage of passengers, livestock, mail or goods shipped at any port in India, and (ii) the amount received or deemed to be received in India by or on behalf of the assessee on account of the carriage of passengers, livestock, mail or goods shipped at any port outside India. Explanation For the purposes of this sub-section, the amount referred