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TMI Blog2019 (11) TMI 1833X X X X Extracts X X X X X X X X Extracts X X X X ..... and concluded outside and hence, no income there-from deemed to accrue or arise in India in terms of section 9(1)(i) of the I.T.Act, 1961 and DTAA provisions and accordingly, not chargeable to tax. We, further noted that an identical issue has been considered for AY 2014-15 [ 2018 (9) TMI 2119 - ITAT MUMBAI] , where by following the earlier order of the Tribunal, the coordinate bench held that amount received towards supply of material and equipment under offshore supply contracts would not form part of the business receipts for the purpose of section 44BBB of the I.T.Act, 1961. Thus, amount received towards offshore supply contracts, in respect of goods supplied outside India is not liable to tax in India in terms of section 9(1) of the I. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts is not taxable In India, The appellant craves leave to amend or after any of the above grounds or add a new ground, if and when necessary. 3. The brief facts of the case are that the assessee is a joint stock company under the Ministry for Atomic Energy, Russian Federation, incorporated under the provision of Russian Legislature, having its registered office at Mascow, Russia. The assessee is involved in the business of Civil Construction/ ereection, testing and commissioning of power projects in India. Accordingly, the assessee has computed its income under section 44BBB of the I.T.Act 1961. However, while calculating, the profits u/s 44BBB of the Act, the assesee has not included the entire gross receipts received from the Indian ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts u/s 44BBB of the I.T.Act, 1961. Aggrieved by the DRP directions, the assesee is in appeal before us. 4. The Ld. AR for the assessee, at the time of hearing submitted that this issue is squarely covered in favor of the assessee by the decision of ITAT, Mumbai in assessee s own case right from AY 2007-08 to 2013-14, where under identical facts and circumstances, the Tribunal held that amount received towards offshore Supply contracts are not liable to tax in India, because the goods were supplied in outside India and also, payments for said supplies were received in U.S. Dollars in outside India. 5. The Ld. DR, on the other hand, fairly accepted that the issue is squarely covered in favor of the assessee by the decision of ITAT for earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Section 43BBB. Explanation 4 could not overcome the limitation imposed by Explanation 1(a) to Section 9(1) (i) and hence, the impugned income do not form part of business receipts for computation of income u/s 44BBB of the Act. We held so. 7. We, further noted that an identical issue has been considered for AY 2014-15 in ITA No. 6945/Mum/2017, where by following the earlier order of the Tribunal, the coordinate bench held that amount received towards supply of material and equipment under offshore supply contracts would not form part of the business receipts for the purpose of section 44BBB of the I.T.Act, 1961. 8. In this view of the matter and consistent with view taken by the coordinate bench for earlier years, we are of the conside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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