2011 (1) TMI 565

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..... year 2000 for providing engineering and technical services for various projects. These projects are duly sanctioned by the Central Government as well. The assessee for the assessment years 2004-05 and 2005-06 filed its return claiming the benefits under section 44BBB of the Income-tax Act (hereinafter referred to as the "Act"). Section 44BBB of the Act reads as under :   "44BBB. (1) Notwiths .....

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..... its 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 there upon the Assessing Officer shall proceed to make an assessment of the total income or loss of the ass .....

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..... of the Act and observed that as the assessee was maintaining the books of account and on the basis of those documents it could be shown that it was earning more than 10 per cent profits, then actual profits should be brought to tax. The assessee preferred appeals against this order of the Assessing Officer which were dismissed by the Commissioner of Income tax (Appeals). However, in further appeal .....

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..... ees as provided in the aforesaid provisions namely sections 28 to 44AA of the Act would not be applicable in the case of those foreign companies who fulfills the conditions laid down under section 44BBB of the Act. In cases of such companies, this provision which is fictional in nature is made which specifies that a sum equal to 10 per cent of the amount paid or payable to the assessee or to any p .....

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..... nder sub-section (2) of section 44AA of the Act and to get his accounts audited and also furnish report of such audited accounts as required under section 44AB of the Act. On the basis of this provision, the Revenue cannot plead or make out a case that the profits earned by the assessee are more than 10 per cent. In so far as the Revenue is concerned, it has to feel content by what is provided in .....

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