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2012 (6) TMI 321 - ITAT MUMBAIChallenging the taxability of mobilization fee received outside India for the voyage carried out outside India u/s 44BB – Held that:- Minority view that the amount liable to be considered for section 44BB(2) would be the one which is received or receivable on account of supply of machinery, including the hire charges as relatable to the territorial waters outside India – As decided in CIT Dehradun & another Versus Sundowner Offshore International (Burmuda) Ltd. [2009 (2) TMI 46 (HC)] that the mobilization charges received by the assessee attributable to transportation of rig from outside India have to be taken into account for the purpose of computing income u/s 44BB – against assessee. Treatment of disputed, unrealized and unpaid service tax u/s 44BB – the assessee agreed to receive US$ 3.14 million towards outstanding service tax dues in full and final settlement of the claim of US$5.28 million – claim of Service tax on US$ 2.27 million Held that:- As acknowledgement of liability by Hardy to the tune of US$ 3.01 million is received for event to took place in the subsequent year no question of adding the remaining amount in the current year by holding that the assessee acquired any right to receive the amount - the assessee had not acquired any right to receive US$ 2.27 million on account of service tax, being the first step therefore need not embark upon the second step, being its inclusion or otherwise in the receipts for the purposes of section 44BB – in favour of assessee. Challenge charging of interest u/s 234B – Held that:- As decided in case of DIT (International Taxation) v. NGC Network Asia LLC [2009 (1) TMI 174 (HC)] that when the duty is cast on the payer to deduct tax at source, on failure of the payer to do so, no interest can be charged from the payee assessee u/s 234B – in favour of assessee.
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