2019 (3) TMI 2066

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..... Madhur Agrawal a/w Mr. Rajesh Poojary i/b Mint & Conferers ORDER P.C.: 1. This Appeal is filed by the Revenue challenging the Judgment of the Income Tax Appellate Tribunal. The following question has been presented for our consideration: "Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT has erred in excluding service tax from the amount paid or payable to .....

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..... Court in the case of CIT Vs. Sudershan Chemicals Industries Limited 245 ITR 769 and on the decision of Uttarakhand High Court in the case of Director of Income tax, International Taxation, Delhi II Vs. Schlumberger Asia Services Ltd. 317 ITR 156 and held that service tax component cannot form part of the Assessee's income. 3. Learned Counsel for the Assessee drew our attention to a decision .....

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..... ecision of the Supreme Court in Lakshmi Machines Works (supra) is sufficient to answer the question framed in the present appeal in favour of the Assessee. The service tax collected by the Assessee does not have any element of income and therefore cannot form part of the gross receipts for the purposes of computing the 'presumptive income' of the Assessee under Section 44BB of the Act. The .....

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