9911796707
TMI Blog2014 (1) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and in law in affirming the action of the AO in holding that the amount aggregating to Rs. 284,018,951/- received by the appellant on account of reimbursement of service lax, is to be included in the gross receipts u/s 44BB of the Income Tax Act, 1956. Ground No.2 That the ld.CIT(A) has erred on facts and In law in affirming the action of the AO in holding that the amounts aggregating to Rs. 239,920,538/- received by the appellant from its customers as reimbursement of actual expenses (material and catering recharge) incurred by the appellant on their behalf is to be included in the gross receipts u/s 44BB of the Income Tax Act, 1961 (the Act). Ground No.3 That based on the facts and circumstances of the case, the ld. CIT erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 4. Apropos ground no.2, the assessee's representative (AR) submitted that the service tax paid to the Government of India by the assessee is reimbursed by the ONGC on production and submission of original challan by which service tax is deposited to the government treasury. The AR further contended that the ONGC reimbursed 100% amount of service tax paid by the assessee to the Government and the amount is always equivalent to the amount shown in the payment challan submitted by the assessee before the ONGC accounts department. The AR fortified his argument with further submission that the assessee is neither earning any income nor incurring any expenses in this regard because the assessee company gets 100% reimbursement of the service ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment before ONGC and therefore, we are unable to see any element of income in the hands of assessee or any occasion of incurring any expenses by the assessee in this regard. Accordingly, we hold that the Assessing Officer and the Commissioner of Income Tax(A) were not justified in holding that the amount of reimbursement of service tax received by the assessee form its customers i.e. ONGC as reimbursement of actual expenses of service tax incurred by the assessee on their behalf is to be included in the gross receipts for the purpose of section 44BB of the Act. Per contra, we hold that the amount of reimbursement of service tax received by the assessee was not includible in the gross receipts for the purpose of determining income of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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