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TMI Blog2021 (7) TMI 1356X X X X Extracts X X X X X X X X Extracts X X X X ..... e of taxation in themselves and do not distinguish between revenue and capital receipts having made allowance for expenditure including depreciation on capital assets to the extent of 90% of gross revenue - HELD THAT:- This issue has been decided by the Hon ble Uttarakhand High Court in asessee s own case [ 2019 (4) TMI 1177 - UTTARAKHAND HIGH COURT] which has been confirmed by the Hon ble Supreme Court [ 2017 (11) TMI 78 - SUPREME COURT] Receipts on account of services tax - Assessee has claimed that service tax has no profit element in it and is collected on account of statutory requirement and, therefore, it is not taxable u/s.44 BB of the Act. The AO took the view that service tax has the profit element and, therefore, includible in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in hole' is infact the reimbursement of expenses and hence includible in the gross revenue for the purpose of computation of profits as per the provisions of section 44BB of the Act in accordance with the spirit of the ratio of the judgment of Hon'ble Uttarakhand High Court in the case of CIT Vs. Halliburton offshore Services Inc. (300 ITR 265). (iii) Whether the CIT (A) has erred in placing reliance on the order of Hon'ble Uttarakhand High Court in the case of assessee for the AY 1996-97, when the SLP filed by the Revenue against the said judgment is still pending before the Hon'ble Supreme Court. (iv) Whether on the facts and in the circumstances of the case in law, the CIT (A) has erred in holding that receipts on account of serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ays for leave to add, amend, modify or alter any grounds of appeal at the time of or before the hearing of the appeal. 3. The grievance can be summarized in following two categories :- (i) Whether the amount received by the assessee on account of 'equipment lost in hole' is not includible in the gross revenue for the purpose of computation of profits under the presumptive provision of section 44BBof the Act. (ii) Whether receipts on account of service tax are not includible in gross revenue. 4. At the very outset, the counsel for the assessee stated that the impugned issues are squarely covered in favour of the assessee and against the revenue by the decision of the Hon'ble Uttarakhand High Court which has been followed by the first ..... X X X X Extracts X X X X X X X X Extracts X X X X
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