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2017 (9) TMI 1283 - AT - Income TaxComputation of the taxable income under Section 44BB - Receipts on account of service tax - non inclusion in gross revenue of the assessee for the purpose of computation of profits under the presumptive provisions of u/s 44BB - Held that:- This issue stands covered by the judgment of DIT vs. Mitchell Drilling International Pvt. Ltd.(2015 (10) TMI 259 - DELHI HIGH COURT) wherein held for the purposes of computing the ‘presumptive income’ of the assessee for the purposes of Section 44 BB of the Act, the service tax collected by the Assessee on the amount paid t it for rendering services is not to be included in the gross receipts in terms of Section 44 BB (2) read with Section 44 BB (1). The service tax is not an amount paid or payable, or received or deemed to be received by the Assessee for the services rendered by it. The Assessee is only collecting the service tax for passing it on to the government. We find that in the assessee’s own case for the earlier year, the Tribunal has allowed this issue in favour of the assessee. Accordingly, following the binding judicial precedence, we decide this issue in favour of the assessee that service tax element cannot be included in the gross receipts for the purpose of computing the profit and thus, the grounds raised by the Revenue are dismissed.
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