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2021 (7) TMI 1356 - AT - Income TaxComputation of profits under the presumptive provision of section 44BB - Receipts on account tools lost in hold as includible in the gross receipts - case of the assessee is that the said receipt is of capital in nature and hence not chargeable to tax - CIT held that the amount received by the assessee on account of ‘equipment lost in hole’ is not includible in the gross revenue for the purpose of computation of profits under the presumptive provisions of section 44BB of the Act, when the said provisions are a complete code of taxation in themselves and do not distinguish between revenue and capital receipts having made allowance for expenditure including depreciation on capital assets to the extent of 90% of gross revenue - HELD THAT:- This issue has been decided by the Hon’ble Uttarakhand High Court in asessee’s own case [2019 (4) TMI 1177 - UTTARAKHAND HIGH COURT] which has been confirmed by the Hon’ble Supreme Court [2017 (11) TMI 78 - SUPREME COURT] Receipts on account of services tax - Assessee has claimed that service tax has no profit element in it and is collected on account of statutory requirement and, therefore, it is not taxable u/s.44 BB of the Act. The AO took the view that service tax has the profit element and, therefore, includible in the gross turnover of the assessee. This issue has also been considered by the Hon’ble Uttarakhand High Court in assessee’s own case [2019 (4) TMI 1177 - UTTARAKHAND HIGH COURT] - nce the issue is now well settled in favour of the assessee and against the revenue we do not find any reason to interfere with the findings of the CIT(A). The grounds relating to this issue are also dismissed.
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