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2016 (9) TMI 201 - ITAT DELHIClam of non-taxability of the reimbursement of service tax in computing income u/s 44BB of the Act denied - Held that:- Service tax received by the assessee cannot be included in the gross receipt for the purpose of computation of deemed profit. Consequently, this ground is determined in favour of the assessee. Reimbursement of loss of equipment in the well - whether includible in the gross revenue received from M/s. ONGC Limited for the purpose of computation of profits under the presumptive provisions of section 44BB? - Held that:- This issue has already been decided against the assessee in assessee’s own case cited as ACIT vs. Pride Foramer France SAS [2008 (2) TMI 465 - ITAT DELHI-G ] qua AY 2002-03 wherein it is categorically decided that reimbursement of the loss of equipment in hole/well forms the part of gross receipts and as such falls within the presumptive provisions of section 44BB of the Act for the purpose of computation of profit. So, consequently ground no.1 is determined in favour of the revenue. Deducution u/s 44BB computation - inclusion of amount received by the assessee on account of “Communication Immersat Charges” - Held that:- This issue has already been decided in assessee’s own case [2008 (2) TMI 465 - ITAT DELHI-G ] qua AY 2002-03 and as such, we hold that reimbursement of Communication Immersat Charges are not in the nature of reimbursement and as such are not liable to be taxed under the provisions contained u/s 44BB of the Act. Eligible for benefit of section 44BB of the Act - Whether assessee is entitled to treat the payment received by the assessee from leasing of oil drilling rig as royalty? - Held that:- As relying on assessee's own case for AY 2008-09 grounds raised by the revenue by way of present appeal are not sustainable and the findings returned by the DRP directing the AO to apply the deemed profit rate of 10% u/s 44BB of the Act on the revenue earned by the assessee from a nonresident company, M/s Pride Foramer on account of provision of offshore drilling rig on hire for executing contracts with M/s. ONGC; and treating the amount received by the assessee from M/s. Pride Foramer on account of the provisions of drilling rig under Charter Agreement not in the nature of royalty as defined u/s 9(1)(vi) of the Act and not taxable under the provisions contained u/s 44DA read with section 115A of the Act and that DRP has rightly not applied the distinct scheme of taxation of royalty/fee for technical services while entering the provisions contained u/s 44BB / 44DA / 115A, hence appeal filed by the revenue is hereby dismissed.
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