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TMI Blog2009 (7) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount mentioned in sub-section (2) of Section 44BB of the Act. - sub-section (1) of Section 44BB read with Clause (a) of sub-section (2) of Section 44BB of the Act expressly provides that it makes no difference whether the amount was paid or payable in or outside India. The section does not exclude the mobilization / demobilization charges paid for transportation of the plant and machinery from the place out of India to the locations in India or its territorial waters. – Decided in favor of revenue X X X X Extracts X X X X X X X X Extracts X X X X ..... ia Limited be included in the gross receipts, received by the assessee? After hearing the parties, the Assessing Officer included said receipts amounting to Rs. 4,78,52,006/-. Aggrieved by said order, the assessee preferred appeal before the Commissioner of Income Tax (Appeals) [for brevity CIT(A)], but the same was also dismissed vide order dated 29.09.2004, passed by CIT(A)-1, Dehradun. Thereafter, the assessee filed Second Appeal No. 388 / Del / 2005 before the ITAT, Delhi. The ITAT, after hearing the parties, dismissed the appeal holding that Section 44BB apply to the mobilization charges received by the assessee, and accordingly, the receipts are rightly taxed @ 10 per cent as per provision of Section 44BB of the Act. Hence, this appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n India by or on behalf of the assessee 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. [(3) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Commissioner of Income Tax, Meerut and another decided on 28.09.2007, Division Bench of this Court has opined that the payment made to the assessee on account of mobilization fee is not the actual reimbursement, rather, it includes the expenditure incurred by the company in transporting the drilling units of rigs to the specified drilling locations in India. As such, such amounts received are liable to be included in the 'gross receipts'. That being so, in our opinion, the amount received by the assessee in the present case towards mobilization / demobilization charges form part of the amount mentioned in sub-section (2) of Section 44BB of the Act. Therefore, we concur with the view taken by the ITAT in holding that the mobilization / dem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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