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2021 (12) TMI 753 - AT - Income TaxScope of Section 44BB - Service tax inclusion in the gross revenue for computing profits under presumptive provisions of section 44BB - HELD THAT:- Excludability of service tax in the gross receipts is squarely covered by the judgment of the Hon'ble Delhi High Court in the case of Mitchell Drilling International Pty Limited [2015 (10) TMI 259 - DELHI HIGH COURT] wherein held that service tax being statutory levy should not form part of gross receipts as per provisions of section 44BB. Further Hon’ble High Court of Uttarakhand in the case of DIT International Taxation Vs M/s Schlumberger Asia Services Ltd.[2019 (4) TMI 1177 - UTTARAKHAND HIGH COURT] held that the amount reimbursed to the assessee (service provider) by the ONGC (service recipient), representing the service tax paid earlier by the assessee to the Government of India, would not form part of the aggregate amount referred to in clauses (a) and (b) of sub-section(2) of Section 44BB of the Act. The Hon’ble Court is clearly spelt that even otherwise, it is not every amount paid on account of provision of services and facilities which must be deemed to be the income of the assessee under Section 44BB . It is only such amounts, which are paid to the assessee on account of the services and facilities provided by them, in the prospecting for or extraction or production of mineral oils, which alone must be deemed to be the income of the assessee. Thus we hold that the service tax receipts donot form part of receipts for computation of income in the section 44BB of the Income Tax Act. - Decided against revenue.
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