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TMI Blog2018 (10) TMI 1503X X X X Extracts X X X X X X X X Extracts X X X X ..... unt received by the assessee from its customers as reimbursement of actual expenses(material and fuel expenses) incurred by the assessee on their behalf - Held that:- Direction of the DRP in holding that the amounts aggregating to ₹ 476,513,071/-, received by the assessee from its customers as reimbursement of actual expenses(material and fuel expenses) incurred by the assessee on their behalf is to be included in the gross receipts u/s 44BB of the Income Tax Act is concerned, we find that this issue is also covered against the assessee by the order of the ITAT in assessee’s own case for assessment year 2008-09 wherein the Coordinate Bench had followed the judgment in the case of CIT vs. Halliburton Offshore Services Inc (2007 (9) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the assessment year under consideration, the assessee had carried out business activities with regard to providing drill rigs and integrated services in connection with exploration and provision of mineral oil. In all, the assessee had provided seven rigs during the assessment year for the purpose of executing offshore drilling contracts in India. All the seven rigs which were provided during the year were continuing from earlier year contracts i.e. they were ongoing contracts. The company provided drilling operations under contracts to Reliance Industries Ltd. and Oil Natural Gas Corporation of India during the year under consideration. In view of the provisions of section 44BB of the Act, the assessee offered 10% of its gross receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer also added the gross receipt from TDSIPL amounting to ₹ 15,94,96,140/- to the income of the assessee without giving the benefit of provision of section 44BB. 2.2 Aggrieved, the assessee filed its objections before the learned Dispute Resolution Panel (DRP). The Ld. DRP held that as far as the consideration received by the assessee from contract with TDSIPL was concerned, the same was also to be taxed as per provisions of section 44BB. Similarly, with respect to the service tax element which had been clubbed by the Assessing Officer with the gross receipts for the purpose of computing taxable profits u/s 44BB, the Ld DRP directed the Assessing Officer to delete the element of service tax from the gross receipts. With respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on facts and in law in holding that the amounts aggregating to INR. 476,513,071/-, received by the appellant from its customers as reimbursement of actual expenses(material and fuel expenses) 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). Your appellant prays that the erroneous order be cancelled and appropriate relief may be granted to the appellant. 3.0 At the outset, the Ld. AR fairly admitted that both the issues raised by the assessee are covered against the assessee by the order of the ITAT in assessee s own case in ITA No. 5286/Del/2011. The Ld AR placed a copy of the ITAT order before the Bench and submitted that the same may be followed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fictional taxing provision contained u/s 44BB, the Assessing Officer was right in adding the amount of ₹ 99,04,000/- for the assessment year 1986-87 and the amount of ₹ 64,64,530/- for the assessment year 1987- 88 received by the assessee towards mobilization charges for the purpose of imposing income tax and the CIT(A) and the Tribunal were also right in upholding the order of Assessing Officer. 5.1 Accordingly, on identical facts and respectfully following the order of the jurisdictional High Court in this regard, we dismiss ground no. 1 of assessee s appeal. 5.2 As far as ground no. 2 which challenges the direction of the Ld. DRP in holding that the amounts aggregating to ₹ 476,513,071/-, received by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , or extraction or production of, minerals oils in India. Clause (b) of sub section (2) refers to the amounts (a) received by assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used or to be used in the prospecting for, or extraction or production of, mineral oils outside India. Thus it is clear from a perusal of section 44BB that all the amounts either paid or payable (whether in or out of India) are mutually inclusive. This amount is the basis of determination of deemed profits and gains of the assessee at 10%. The amount paid or received refers to the total payment to the assessee or payable to the assessee or deemed to be received by the assessee, whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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