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2020 (1) TMI 1364 - AT - Income TaxCorrect procedure for calculating receipts - income from business and profession in case of currency conversion - difference in the revenues offered to tax and the revenues as per 26AS - HELD THAT:- We see no reasons to interfere in the conclusion so arrived at by the learned CIT(A). The rate at which revenues are required to be converted in the hands of the assessee is to be computed in accordance with Rule 115(1) which refers to the TT Buying Rate on the specified date. It is therefore possible, in fact inevitable, that they may be variations in the revenues computed in the hands of the assessee vis-a-vis the revenues converted as on the date on which the foreign currency payments are made by the payee. We have noted that learned CIT(A) has any way remitted the matter could be filed of the assessing officer for verification of the applicable TT Buying Rate under rule 115(1). We therefore see no infirmity in the order of the learned CIT(A) and declined to interfere the matter. Service tax should be excluded from gross receipts for the purpose of computation of income u/s. 44BB - HELD THAT:- ITAT Mumbai Bench in the case of M/s. Weatherford Drilling Vs. DCIT [2018 (6) TMI 1526 - ITAT MUMBAI] in which it has been clearly held that the service tax is not liable to be include in gross receipt in terms of Section 44BB(1) r.w. Section 44BB(2) of the Act because the same is not part of the gross receipt for the purpose of depositing the presumptive tax. Taking into account all the facts and circumstances, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Accordingly, we decide all the issues in favour of the assessee against the revenue.
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