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2017 (11) TMI 1775 - AT - Income TaxDetermination of income u/s 44BB - reimbursement of expenses from GSPC were includible in the receipts for the purpose of determination of income under section 44BB - whether the said amount is devoid of any profit element and do not constitute income in the hands of the appellant? - HELD THAT:- Both the parties agreed that the issue is squarely covered by the decision of Honble Jurisdictional High Court in the case of Commissioner of Income Tax Vs. Halliburton Offshore Services Inc.[2007 (9) TMI 230 - UTTARAKHAND HIGH COURT] wherein it has been held that section 44BB is a complete code in itself and all amounts including reimbursements are includible within the amount paid or payable to the assessee for the purpose of taxation under section 44BB of the Act. Therefore, this issue is decided against the assessee and in favour of the Revenue. Applicability of provisions of section 44BB to provision of barge - whether the receipts for activity carried out by appellant for L&T is inextricably linked with exploration, exploitation and production of mineral oil and cannot be held to be taxable as royalty in terms of section 9(1)(vi) of the Act? - HELD THAT:- We find that the issue under consideration is squarely covered in favour of the assessee by the decision of SBS Marine Limited [2015 (3) TMI 147 - ITAT DELHI] wherein it has been that second leg contracts are also eligible for benefit of tax treatment provided in section 44BB of the Act. This decision of ITAT stood confirmed by the Jurisdictional High Court [2015 (8) TMI 1253 - UTTARAKHAND HIGH COURT] after relying on the decision of Apex Court in ONGC vs. CIT [2015 (7) TMI 91 - SUPREME COURT]. - Decided in favour of the assessee
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