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TMI Blog2020 (1) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. "On the facts and circumstances of the case, ld. CIT(A) erred in holding that the correct procedure for calculating receipts in the case of income from business and profession in case of currency conversion is explanation 2(c) to rule 115(1) without taking into account the proviso to the rule 115(1)." 3. The assessee is engaged in the business of charter and hire of oil drilling rig and other allied services. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that there was a difference in the revenues offered to tax and the revenues as per 26AS. In response to assessing officer show cause notice as to why the difference of Rs. 9,29,66,745/- not be brought to tax it was explained by the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on his behalf in foreign currency shall be the telegraphic transfer buying rate of such currency as on the specified date. It can be clearly seen that the stipulation is for "calculation of value of any income accruing or arising ......". It is income specific when sums received in foreign currency. The proviso is limited to TDS and TDS provisions is not for deciding income but for the purpose of chapter XVII-B and concern as to how "specified date" is determined. There is variance between the manner conversion rate for exchange is to be adopted in determination of income and determination of tax deduction at source. When rule provides as to how income is to be computed then that has to prevail since accurate computation of income is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmity in the order of the learned CIT(A) and declined to interfere the matter. 8. In the result ground no. 1 is dismissed. 9. In the second ground of the appeal the assessee has raised the following grievance:- 2. "On the facts and circumstances of the case, ld. CIT(A) erred in holding that the service tax should be excluded from gross receipts for the purpose of computation of income u/s. 44B without appreciating that fact that word used in the section is aggregate of the amounts and aggregate intends combined or collective and also the fact that an appeal has been admitted by the jurisdictional High Court on the similar grounds in the case of Hanjin Shipping Co. Ltd." 10. The learned Representative fairly agreed that this issue is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax-1 Vs. Mitchell Drilling International in ITA. No.403/2013 dated 28.09.2015 and the decision of the Mumbai Bench in the case of M/s. Weatherford Drilling Vs. DCIT in ITA. No.495/M/2017 dated 20.06.2018. However, on the other hand, the Ld. Representative of the Department has placed reliance upon the decision of the Mumbai Tribunal in the case of China Shipping Container Lines Vs. Assistant Director of Income Tax, Mumbai. No doubt, the law relied by the Ld. Representative of the revenue speaks that the service tax is the part and parcel of the profit, therefore, the same was subject to presumptive profit and gain u/s 44BB of the Act. The issue has been considered by Hon'ble Delhi High Court in the case of Mitchell Drilling Internation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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