TMI Blog2018 (4) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... Drilling International P. Ltd. [2015 (10) TMI 259 - DELHI HIGH COURT] Chargeability of interest u/s 234B - Held that:- Hon’ble Delhi High Court in the case of DIT vs GE Packaged Power Inc [2015 (1) TMI 1168 - DELHI HIGH COURT] held that interest u/s 234B was not chargeable in the case of a non-resident whose entire income was subject to tax deduction at source u/s 195 of the Act. In view of this binding precedent, we hold this issue also in favour of the assessee. - I.T.A. No. 3910/Del/2014 - - - Dated:- 29-1-2018 - Shri G.D. Agrawal, President and Shri K. Narsimha Chary, Judicial Member Appellant by: Smt. Ritu Sharma Respondent by: S/Sh. Amit Arora, CA Vishal Mishra,CA ORDER PER K. NARSIMHA CHARY, JM Aggri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue received by the assessee on account of provision of alleged services was in the nature of fees for technical services u/s 9(1)(vi) of the Act; ii. the revenue received by the assessee on account of supply of consumables, spares etc., was in the nature of fees for technical services u/s 9(1)(vi) of the Act; iii. the receipts on account of service-tax and reimbursement of expenses incurred on material recharge to be in the nature of royalty/fees for technical services u/s 9(1)(vi), 9(1)(vii) of the Act; iv. the assesse had a permanent establishment in India through which the business was carried on in India and that the income as aforesaid was attributable to such Indian permanent establishment; v. in view of the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en held that the income on account of provision of equipment and services earned by the assessee company shall be taxable as per the provisions of Section 44BB of the Act. He further submitted that the appeal preferred by the revenue against the said order was dismissed by the Hon ble Uttarakhand High Court. At the very threshold, he further submitted that the Hon ble Apex Court in the case of ONGC vs. CIT, 376 ITR 306 held that the services in connection with exploration and production of mineral oil shall fall within the purview of Section 44BB and outside the purview of fees for technical services as defined in Section 9(1)(vii) of the Act. He also brought it to our notice that in the assessment order for the Asstt. Year 2014-15, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diction High Court in the case of CIT vs Mitchell Drilling International P. Ltd. 380 ITR 130 in support of his contention that the service-tax being statutory levy, should not form part of gross receipts as per provision of Section 44BB of the Act. He further placed reliance on the decision of the coordinate bench in the case of DDIT vs Sundowner Offshore International (Bermuda) Ltd. ITA 1067/Del/2016 for a similar principle. We find that the principle laid down in the above decision squarely applies to the facts of this case also, as such, while respectfully following the same, we answer the issue that the service-tax does not form part of the gross receipts for computation u/s 44BB of the Act. 7. Lastly, now turning to the chargeabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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