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TMI Blog2018 (10) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... way of a detailed and speaking order. So also for this year also Ld. DRP recorded that because a view was taken for the earlier years by the DRP, the same course is followed and no discussion is made in the impugned order - remit the matter to the DRP for passing a speaking and reasoned order on the various objections taken by the assessee on disallowances made by the AO. Inclusion of service tax amount in respect of the M/s HOEC contract - denial of applicability of provisions of Section 44BB of the Act in respect of revenue earned by the assessee in terms of the agreement with the M/s HOEC - Held that:- For the purpose of computing the presumptive income of the assessee for the purpose of Section 44BB of the Act, the service tax coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent : Shri G.K. Dhall, CIT DR ORDER PER NARASIMHA K. CHARY, JM ITA No.1157/Del/2015 is filed by the assessee and ITA No.797/Del/2015 is filed by the Revenue challenging the directions u/s 144C(5) of the Income-tax Act, 1961 ( the Act ) dated 28.11.2014 of the Disputes Resolution Panel-II, New Delhi. 2. Relevant facts, in brief, are that the assessee is a company incorporated under the laws of United Kingdom. They have entered into Production Sharing Contract with Government of India along with other consortium members for exploration, development and production of mineral oil in various blocks. For the Asstt. Year 2010- 11, they have filed their return of income on 28.9.2010 declaring a loss of ₹ 18,51,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance of the expenditure of ₹ 18,51,22,144/- is concerned. 5. So also in respect of the addition of ₹ 1,67,25,656/- towards the service tax amount in respect of M/s HOEC contract, learned DRP by following the decision of the Delhi Tribunal in the case of Technip Offshore Contracting BV for Asstt. Year 2005-06 29 SOT 33 (Delhi) opined that the amount of service tax collected by the assessee in connection with the services or facility or supply specified u/s 44BB of the Act is includible in the total receipts for the purpose of determining presumptive profit of 10% u/s 44 of the Act. In so far as the AO refusing to apply the provisions of Section 44BB of the Act in respect of the revenue earned by the assessee under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d DRP, however, also observed in their order that against the orders of the learned DRP for earlier years, appeal was filed and pending before the Tribunal. 8. It is submitted by the learned AR that the appeal for the Asstt. Year 2009-10 was disposed off on 23.4.2018 by a coordinate Bench of this Tribunal in ITA No.1839 of 2014 observing that the learned DRP did not consider the assessee s objection nor did it give proper reasons for sustaining the assessment order, not only for Asstt. Year 2009-10 but also for the years 2007-08 and 2009-10. It is further submitted that in respect of the Asstt. Years 2007-08 and 2009-10, the matter was sent back to the DRP for passing a speaking order on disallowance made by the AO. 9. Learned AR pray ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the purpose of computing the presumptive income of the assessee for the purposes of Section 44BB of the Act,, the service tax collected by the assessee on the amount paid to it for rendering services is not to be included. 12. We have gone through the order dated 28.9.2015 of the Hon ble jurisdictional High Court wherein the Hon ble High Court held in unequivocal terms that for the purpose of computing the presumptive income of the assessee for the purpose of Section 44BB of the Act, the service tax collected by the assessee on the amount paid to it for rendering services is not to be included u/s 44BB(2) of the Act. Since the service tax is not an amount paid or payable or received or deemed to have been received by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... volved under the contract including the sale of services of HOEC are covered by the provisions of Section 44BB of the Act. Further, the learned AO enumerated the services in his order for the Asstt. 2012-13, which shall include the following: 1. Specific Services (a) Geology, Geophysics, Hydrocarbon Exploration (b) Research and Development (c) Laboratory studies (d) Laboratory operations (e) Reservoir Reservoir management (f) Well operations (g) Development and project management, Civil Engg and Logistics etc. 2. Operation Geology, Subsurface Geology Petrophysics 3. Petrography Sedimentology 4. Stratigraphy 5. Structural and basin Geology 6. Geophysical Data Acquisition 7. Seismic Data process ..... X X X X Extracts X X X X X X X X Extracts X X X X
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