TMI Blog2018 (3) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... , were required to be considered in the computation of business income and, then, the deduction for actual expenses was to be allowed. Assessee did not include ₹ 1.63 crore in its total income and claimed benefit of TDS from such receipts. We cannot countenance this type of treatment, when the assessee has opted to be governed by the mandate of section 44BB(3) of the Act, but all the revenue receipts and related expenses are not reflected. We, therefore, set aside the impugned order and remit the matter to the file of AO for deciding this issue afresh. In such fresh proceedings, the AO will, inter alia, take ₹ 1.63 crore as revenue receipt with corresponding deduction of actual expenses incurred by the assessee.- Decided in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered for taxation during the year. On being called upon to explain the position, the assessee stated that it received a sum of ₹ 1.63 crore from DDL on account of crew salary and related expenses of employees accounted and assigned to DDL. It was also put forth that the receipt on account of pay roll cost was in the nature of reimbursement and devoid of any element of profit. Since the assessee could not provide any documentary evidence/supporting document with regard to claim that there was no profit element and it was a mere reimbursement, the AO added ₹ 1.63 crore to the assessee s total income. The ld. CIT(A) overturned the assessment order on this point by recording his finding only in three lines in para 4.1 by observi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all not apply in a case where the provisions of section 42 or section 44D or section 44DA or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. ( 2) The amounts referred to in sub-section (1) shall be the following, namely :- ( a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and ( b) the amount received or deemed to be received in India by or on behalf of the assessee on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f account which are audited and the audit report is furnished. In such a situation, the AO shall make an assessment of the total income under subsection 143(3) of the Act with reference to the books of account maintained by the assessee. 5. The assessee in the instant case has, admittedly, opted for the provisions of sub-section (3). In such a situation, income under the head Profits and gains of business and profession is required to be computed with reference to the provisions contained in Chapter IV-D of the Act. In other words, any revenue receipt is liable to be included in the total income and the corresponding revenue expenses are to be allowed as deduction for computing income under the head Profits and gains of business or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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