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2005 (6) TMI 24 - HC - Income Tax"Whether Tribunal was legally correct in holding that there is no scope of grossing up and that the income determined on notional basis in accordance with section 44BB, was not liable to be grossed up under section 195A?" - whether, the concept of multiple stage grossing up of income is applicable to the deemed profits derived by the NRC under section 44BB. Whether, that concept can be applied by the Department to compute income falling under section 44BB? – Department’s contentino, that in the case of tax protected contracts, section 195A was attracted and, therefore, the Department was entitled to compute the deemed profits derived by the NRC by applying the method of multiple stage grossing up of income, doesn’t have any merit – Further, the fact that TDS is deductible under section 195A from the sum payable does not mean that the contractor is assessable for that receipt. - We answer this question in the affirmative, i.e., in favour of the assessee and against the Department.
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