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2018 (10) TMI 1108 - AT - Income TaxDisallowance of the depreciation on data acquisition and incidental services, general and administration expenses and head office expenses - DRP declined to interfere with the action of the AO on the ground that similar disallowance was made by the AO in respect of AY 2007-08, 2008-09 and 2-009-10 and was upheld by the learned DRP and, therefore, rule of consistency demands that the said view - Held that:- In assessee’s own case for the AYs 2009- 10, we find that in all the appeals relating to the AY 2007-08 to 2009-10, the assessee alleged that the learned DRP did not dispose of the assessee’s objections by way of a detailed and speaking order. So also for this year also Ld. DRP recorded that because a view was taken for the earlier years by the DRP, the same course is followed and no discussion is made in the impugned order - remit the matter to the DRP for passing a speaking and reasoned order on the various objections taken by the assessee on disallowances made by the AO. Inclusion of service tax amount in respect of the M/s HOEC contract - denial of applicability of provisions of Section 44BB of the Act in respect of revenue earned by the assessee in terms of the agreement with the M/s HOEC - Held that:- For the purpose of computing the ‘presumptive income’ of the assessee for the purpose of Section 44BB of the Act, the service tax collected by the assessee on the amount paid to it for rendering services is not to be included u/s 44BB(2) of the Act. Since the service tax is not an amount paid or payable or received or deemed to have been received by the assessee for the services rendered by it and the assessee is only collecting the service charge for passing it on to the Government. In view of the binding precedent while respectfully following the same, we allow Ground No.5 and direct the learned AO to delete the addition. Denial of applicability of provisions of Section 44BB in respect of revenue earned by the assessee in terms of the agreement with the M/s HOEC - AO determined the income as fee for technical services u/s 9(1)(vii) of the Act read with Section 44BA of the Act and estimated the profit at 25% of the gross receipts in respect of the above contract - Held that:- Services are intrinsically related to the exploration etc. of the mineral oils and covered by Section 44BB of the Act. We are, therefore, of the considered opinion that the finding of the learned CIT(A) is perfectly correct and does not warrant any interference. We, therefore, do not find any substance in the grounds of appeal of the revenue and dismiss the same. - Decided in favour of assessee.
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