TMI Blog2018 (9) TMI 2119X X X X Extracts X X X X X X X X Extracts X X X X ..... under offshore supply contract is to be excluded from gross receipt for computing income under section 44BBB. Operative part of the decision [ 2017 (9) TMI 1999 - ITAT MUMBAI] as decided the issue in favour of the assessee by holding that the amount received by the assessee from supply of material and equipment under offshore supply contracts would not form part of the business receipts for the purpose of section 44BBB of the Act. Decided in favour of assessee. - ITA No.6945/M/2017 And ITA No.6946/M/2017 - - - Dated:- 17-9-2018 - Shri Joginder Singh, Judicial Member And Shri Rajesh Kumar, Accountant Member For the Assessee : Shri Nitesh Joshi, A.R. For the Revenue : Shri Samuel Darse, D.R. ORDER PER RAJESH KUM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the above grounds or add a new ground, if and when necessary. 3. We would like to first deal with the ground raised on merit by the assessee which is against the order of DRP holding that the amount of Rs.66,14,38,884/- received by the assessee from offshore contract was taxable in India. 4. The facts in brief are that the assessee is a joint stock company under the Ministry of Atomic Energy, Russian Federation, incorporated under the provisions of Russian legislation having its registered office at Moscow, Russia. The Nuclear Power Corporation of India Ltd (NPCIL) is setting up two nuclear power plants in accordance with agreement for cooperation for construction of nuclear power station between Republic of India and Russian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the arguments of the Ld. A.R. 7. After hearing both the parties and perusing the material on record including the decisions of the co-ordinate benches of the Tribunal in assessee s own case in the earlier years from A.Y. 2007-08 to A.Y. 2013-14, we observe that identical issue was decided by the co-ordinate benches of the Tribunal in favour of the assessee by holding that amount received for supply of material and equipment under offshore supply contract is to be excluded from gross receipt for computing income under section 44BBB of the Act. The operative part of the decision in ITA No.619/M/2017 A.Y. 2013-14 order dated 06.09.2017 is reproduced as under: 3. Before us, representatives of both the sides agreed that the issue stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note, the taxability of the amount received under .the offshore contract is a contentious issue between the assessee and the Department right from the assessment year 2006-07. In fact in the impugned assessment year, the Assessing Officer following the order of the DRP for assessment year 2006-07 and 2007-08, has brought to tax the amount received under off-shore supply contracts by applying identical nature of dispute raised by the assessee for assessment year 2007-08, 2008-09 and 2011-12, the Tribunal in its order, as referred to above, after analyzing the nature of contract, provisions of the Act, and relevant DTAA as well as the principles of law laid down in judicial precedents, in a detailed order ultimately concluded, since, supply o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no.1 to 5, are allowed. Respectfully, following the above order of the Tribunal, we decide the effective ground of appeal in favour of the assessee. 8. We, therefore, respectfully following the order of coordinate bench of the Tribunal, decide the issue in favour of the assessee by holding that the amount received by the assessee from supply of material and equipment under offshore supply contracts would not form part of the business receipts for the purpose of section 44BBB of the Act. 9. Since we have decided the issues on merit in favour of the assessee as stated hereinabove, therefore the legal issue raised by the assessee challenging the jurisdiction of the AO under section 147 is rendered academic and is not being ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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