Supreme Court: Cruise Operators Eligible for Section 44B Presumptive Taxation; Hospitality Services Do Not Change Nature of ‘Carriage’

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Last updated: 06 August 2026
Quick Summary
The Supreme Court has ruled that cruise operators are eligible for the Section 44B presumptive taxation scheme. The court rejected the Revenue's argument that cruise ship operations, which include hospitality and entertainment, were not primarily 'carriage of passengers'. It clarified that ancillary services do not alter the fundamental nature of the shipping business.

Court :
SUPREME COURT OF INDIA

Brief :
In a significant ruling, the Supreme Court has held that a foreign cruise operator carrying passengers in India is entitled to the benefit of Section 44B of the Income-tax Act, 1961, even where the cruise also provides hospitality and entertainment services. The Court dismissed the Revenue's appeals and upheld the concurrent findings of the CIT(A), ITAT, and the Bombay High Court.

Citation :
CIVIL APPEAL NO(S). 3334-3336 OF 2012

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