TMI Blog2018 (4) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 - Hon ble President, Shri G. D. Agrawal And Shri Kuldip Singh, Judicial Member Assessee by : Shri Amit Arora, CA and Shri Vishal Mishra, CA Revenue by : Shri Raman Chaudhry, CIT DR ORDER Per Kuldip Singh, Judicial Member Since common questions of facts and law have been raised in both the aforesaid appeals, the same are being disposed of by way of consolidated order to avoid repetition of discussion. 2. The Appellant, M/s. Transocean Offshore International Ventures Limited (hereinafter referred to as the taxpayer ) by filing the present appeal sought to set aside the impugned order dated 29.12.2015, passed by the AO in consonance with the orders passed by the ld. DRP under section 143 (3) read with section 144 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nary course of its business forms part of its business receipts. Owing to the inherent similarity in the nature of sales tax and service tax, the ratio of the judgment in the said case is directly applicable to the instant case. 3. The Appellant, M/s. Triton Holdings Limited (hereinafter referred to as the taxpayer ) by filing the present appeal sought to set aside the impugned order dated 28.12.2015, passed by the AO in consonance with the orders passed by the ld. DRP under section 143 (3) read with section 144C of the Income-tax Act, 1961 (for short the Act ) qua the assessment year 2011-12 on the grounds inter alia that i) Whether on the facts and in the circumstances of the case and in law, the DRP has erred in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 4. Briefly stated the facts necessary for adjudication of the controversy at hand are : the Revenue has challenged the findings returned by the ld. DRP; that service tax element cannot be included with gross receipts for the purpose of computing taxpayer profit u/s 44BB of the Income-tax Act, 1961 (for short the Act ), and consequently the AO was ordered to exclude the element of service tax from gross contractual receipts in respect of all the contractors i.e. Oil Natural Gas Corporation (ONGC), Reliance Industries Limited (RIL) and Transocean Drilling Services (India) Ltd. (TDSIPL). 5. Feeling aggrieved, the Revenue has come up before the Tribunal by way of filing the present appeals. 6. We have heard the ld. Authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,31,260 as per provisions of s 44BB(3)-In computing the gross receipts for the purposes of determining the taxable income, the assessee had not included a sum of ₹ 2,09,24,553 being the service tax received from its customers-AO included the concerned sum collected by the assessee as service tax in the gross receipts for computing the taxable income u/s 44BB-CIT allowed assessee's appeal-ITAT dismissed revenue's appeal-Issue was whether the service tax collected by the assessee and passed on to the Government from the person to whom it had provided the services can legitimately be considered to form part of the gross receipts for the purposes of computation of the assessee's 'presumptive income' u/s 44BB-Held, pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; of the assessee u/s 44 BB-Question was therefore, answered in the negative i.e. favour of the Assessee and against the Revenue-Revenues appeal's dismissed 9. In assessee s own case for AY 2008-09, the identical issue has been decided in its favour. So, following the decision rendered by the Hon ble Delhi High Court in Director of Income-tax vs. Mitchell Drilling International Pvt. Ltd. (supra) and decision rendered by the coordinate Bench of the Tribunal in assessee s own case, we are of the considered view that the service tax collected by the assessee shall not form part of the gross receipts for the purpose of determining income for taxable purpose u/s 44BB of the Act. Consequently, question framed is answered in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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