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TMI Blog2019 (6) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. In fact the entire contract should have been considered properly by the Assessing Officer which he failed to do so. Therefore, in light of the decision of the Tribunal which is having identical facts in the present year as well, this issue is decided in favour of the assessee. Computation of profits - whether Service Tax would not form part of gross receipts for the purpose of computation of profits under the presumptive provisions u/s 44BB ? - HELD THAT:- As decided in MITCHELL DRILLING INTERNATIONAL PVT. LTD. [ 2015 (10) TMI 259 - DELHI HIGH COURT] purpose of Section 44BB, the service tax collected by the Assessee on the amount paid to it for rendering services is not to be included in the gross receipts in terms of Section 44BB(2) read with Section 44BB(1). Besides that the CIT(A) also held that the issue is covered in favour of the assessee due to the cases of M/s Sedco Forex [ 2012 (7) TMI 250 - ITAT, DELHI] allowed this ground with direction to exclude service tax from the purview of computation of income u/s 44BB. Ground No. 2 of the Revenue s appeal is dismissed. Liability to pay interest u/s 234B - HELD THAT:- As decided in MAERSK CO. LTD. [ 2011 (4) TMI 886 - UT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. 2.1. Whether the Ld. CIT(A) has erred in not appreciating the fact that the provisions of section 44BB are a self-contained code providing for computation of profits at a fixed percentage of gross receipts of the assessee and all the deductions and exclusions from income are deemed to have been allowed to the assessee. 2.2. Whether the Ld. CIT(A) has erred in not appreciating the fact that once the receipts are held as assessable u/s 4488 of the Act which provides for computation of profits on gross basis, there is no scope for computing or recomputing the profits by excluding any element of the receipts from the total turnover as the same would amount to defeating the very purpose of providing for a scheme of simpler mode of computation of profits u/s 44BB of the Act and obviating the need for accounting for individual receipts and payments etc. 2.3. Whether the Ld. CIT(A) has erred in ignoring the judgment of the Hon'ble ITAT in the case of DDIT v/s Technip Offshore Contracting, [29 SOT 33 Del] and the Ruling of Hon'ble AAR in the case of Siem Offshore [337 ITR 207], wherein it has been held that service tax receipts of the assessee have to be considered as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the hearing of the appeal. 3. The assessee company is a non resident company incorporated under the law of Norway. The assessee company entered into the contract with Gujrat State Petroleum Ltd. vide contract dated 12/12/2007 for off shore supply vessel services required for off shore drilling. Return of income was filed by the assessee electronically on 30/09/2010 declaring total income of ₹ 2,72,78,810/-. The case was selected for scrutiny and accordingly notice u/s 143(2) was issued on 21/9/2011. Further, notice u/s 142(1) along with questionnaire dated 4/4/2012 was issued by the Assessing Officer. Further, notice u/s 142(1) dated 7/11/2012 was issued and another notice along with questionnaire dated 30/11/2012 was issued. The CA and AR of the assessee attended the proceedings from time to time and submitted written replies. A draft assessment order u/s 143(3)/144C(1) of the Income Tax Act, 1961 was passed on 15/3/2013 thereby assessing total income at ₹ 3,82,96,710/-. The Assessing Officer made addition of ₹ 36,37,17,501/- in respect of receipts offered and also made addition of ₹ 1,92,49,636/- towards service tax receipts as well as made addition a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 44BB are a self-contained code providing for computation of profits at a fixed percentage of gross receipts of the assessee and all the deductions and exclusions from income are deemed to have been allowed to the assessee. The Ld. DR submitted that once the receipts are held as assessable u/s 44BB of the Act which provides for computation of profits on gross basis, there is no scope for computing or re-computing the profits by excluding any element of the receipts from the total turnover as the same would amount to defeating the very purpose of providing for a scheme of simpler mode of computation of profits u/s 44BB of the Act and obviating the need for accounting for individual receipts and payments etc. The Ld. DR relied upon the decision of Tribunal in case of DDIT vs. Technip Offshore Contracting (29 SOT 33 Del.) and Ruling of AAR in case of Siem Offshore (337 ITR 207). The Ld. DR also relied upon the decision of the Hon'ble Apex Court in case of ONGC vs. CIT 376 ITR 306. 9. The Ld. AR submitted that the CIT(A) has rightly deleted this additions. The Ld. AR relied upon the decision of the Hon'ble Delhi High Court in case of DIT vs. Mitchell Drilling International ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n case of DIT vs. Maersk Co. Ltd. 334 ITR 79. 13. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the Hon'ble Uttarakhand High Court in case of Maersk Co. Ltd. (supra) held as under: "24. In light of the aforesaid, we are of the view that the assessee was not laible to pay advance tax under section 208 of the Act inasmuch as the tax at source was required to be deducted by the person responsible for paying any income chargeable under the head "Salaries" at the time of payment under section 192 of the Act. The assessee only became liable to pay the tax directly under section 191 of the Act since it was not deducted at source. The stage for making payment of tax could only arise at the stage of self-assessment which is to be made in a later assessment year as is clear from section 190 of the Act, whereas advance tax is liable to be paid in a financial year only and not thereafter. We are consequently of the view that if the employer fails to deduct the tax at source while paying any income chargeable under the head "Salaries", would be responsible for payment of interest under section 201(1A) of the Act. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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