TMI Blog2009 (4) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the ITAT and CIT(A) have erred in law in holding that the catering charges are liable to be excluded from the amount for the purpose of calculating the ten per cent deemed profit. - 10 of 2007 - - - Dated:- 24-4-2009 - Prafulla C. Pant, B. S. Verma, JJ, Mr. Arvind Vashisth, Standing Counsel for the appellants. Mr. S.K. Posti, Advocate for the respondent. Hon. Prafulla C. Pant, J. (oral) This appeal, preferred under Section 260-A of the Income Tax Act, 1961 (hereinafter referred as the Act) is directed against the order dated 1 st February 2006, passed by the Income Tax Appellate Tribunal, Delhi Bench 'B', New Delhi (hereinafter referred as ITAT), in Income Tax Appeal No. 3869 / De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the catering charges and the one received on account of loss of down hole equipment are not liable to be included for the purposes of Section 44BB of the Act. The Revenue challenged said order passed by the CIT(A) on 06.06.2002, before the ITAT, Delhi, which was registered as I.T.A. No. 3869 / Del / 02 (Assessment Year 1998-99). The ITAT after hearing the parties concurred with the CIT(A) and dismissed the second appeal. Hence, this appeal by the Revenue. 5) Before further discussion, we think it just and proper to quote the provisions contained in Section 44BB of the Income Tax Act, 1961, which reads as under: "44BB. (1) Notwithstanding anything to the contrary contained in sections 28 to 41 and sections 43 and 43A, in the case of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (1), an assessee may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee.] Explanation. -For the purposes of this section,- (i) "plant" includes ships, aircraft, vehicles, drilling units, scientific apparatus and equipment, used for the purposes of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 'amount' defined in sub-section (2) of Section 44BB of the Act. That being so, we are of the opinion that the ITAT and CIT(A) have erred in law in holding that the catering charges are liable to be excluded from the amount for the purpose of calculating the ten per cent deemed profit. Accordingly, the substantial question of law stands answered. 8) For the reasons, as discussed above, this appeal is allowed. The impugned order passed by the ITAT and the order passed by the CIT(A), are set aside to the extent they have held that the catering charges from the amount received by the assessee, are liable to be excluded. Accordingly, the order of Assessing Officer is restored on the above count. - - TaxTMI - TMITax - Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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