Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1322 - ITAT DELHIDetermination of income u/s 44BB of the Act - Receipts of service tax to be included in gross receipts – Held that:- The decision in M/s Sedco Forex International Drilling Inc., C/o Nangia & Co., Versus Additional DIT, International Taxation, Dehradun [2012 (7) TMI 250 - ITAT, DELHI] followed - The service tax is a statutory liability like custom duty - reimbursement of custom duty paid by the assessee could not form part of amount for the purpose of deemed profits u/s 44BB unlike the other amounts received towards reimbursement - service tax being a statutory liability, would not involve any element of profit and accordingly, the same could not be included in the total receipts for determining the presumptive income - The AO is directed to exclude service tax from the gross receipts for the purpose of determining the income under Section 44BB of the Income-tax Act, 1961 – Decided in favour of Assessee. Amount included in gross receipts u/s 44BB of the Act - Reimbursement of actual expenses – Held that:- The decision in CIT and Another Vs. Halliburton Offshore Services Inc. - [2007 (9) TMI 230 - UTTARAKHAND HIGH COURT] followed - The amount had been received by the assessee - Therefore, the Assessing Officer added the said amount which was received by the non-resident company rendering services under the provisions of section 44BB and imposed the income tax – Decided against Assessee.
|