9911796707
TMI Blog2022 (11) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... he course of provision of services and facilities in connection with, or supply of plant and machinery on hire, in the prospecting for, or extraction or production of, mineral oils in India, was liable to be included in the amount paid or payable for the purpose of computation of the presumptive taxable income of the assessee? - HELD THAT:- Full Bench judgment of this Court in DIT (International Taxation) others vs. Schlumberger Asia Services Limited [ 2019 (4) TMI 1177 - UTTARAKHAND HIGH COURT] held that the amount reimbursed to the assessee (service provider) by the ONGC (service recipient), representing the service tax paid earlier by the assessee to the Government of India, would not form part of the aggregate amount referred to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned orders, held in favour of the assessee. While doing so, the Tribunal 3 relied upon the Full Bench judgment of this Court in DIT (International Taxation) others vs. Schlumberger Asia Services Limited in ITA No. 40 of 2012, decided on 12.04.2019, also reported as (2019) 414 ITR 1 (Uttarakhand) (FB). 2. The Full Bench in the said judgment held that the amount reimbursed to the assessee (service provider) by the ONGC (service recipient), representing the service tax paid earlier by the assessee to the Government of India, would not form part of the aggregate amount referred to in Clauses (a) and (b) of sub-section (2) of Section 44 BB of the Income Tax Act. 3. Mr. Bhatia, learned counsel for the appellant-Department su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the view taken by the Delhi High Court and the said view only had persuasive value. Therefore, it would not be correct to say that the Full Bench of this Court, though agreeing with the submission of the Revenue, decided the appeals of the Revenue against it in the light of the judgment of the Division Bench of the Delhi High Court. 7. In para 28 and 29 of its judgment, the Full Bench of this Court, inter alia, observed as follows:- 28. As the expression 'amount paid or payable' in Section 44BB(2)(a), and the expression 'amount received or deemed to be received' in Section 44BB(2)(b), is qualified by the words 'on account of the provision of services and facilities in connection with, or supply of plant and mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facilities which must be deemed to be the income of the assessee under Section 44BB. It is only such amounts, which are paid to the assessee on account of the services and facilities provided by them, in the prospecting for or extraction or production of mineral oils, which alone must be deemed to be the income of the assessee. On a plain and literal reading of clauses (a) and (b) of Section 44BB of the Act, it is clear that reimbursement of service tax ought not to be included in the aggregate of the amounts specified in clauses (a) and (b) of Section 44BB(2), as it is not an amount received by the assessee on account of services provided by them in the prospecting, extraction or production of mineral oils. 8. Firstly, we are bound by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
