https://www.taxtmi.com/caselaws?id=465058 ITAT Delhi-AT dismissed the revenue's appeal and allowed the assessee's cross-objection. It held that service tax reimbursement is not includible in "gross receipts" for computing presumptive income under s. 44BB, as it is a statutory levy recovered and remitted to Government, not consideration for services. Amounts received towards "equipment loss in hole" were treated as capital receipts, being reimbursement for destroyed drilling tools, and thus excluded from s. 44BB gross revenue. On attribution of profit from overseas sale of equipment, the Tribunal accepted the assessee's 2% profit attribution to Indian operations, holding that all comparables, including loss-making or low-margin ones that passed the FAR test, must be considered, yielding an arm's length margin below 2%. en-us Fri, 22 Dec 2023 00:00:00 +0530 Tue, 02 Dec 2025 11:25:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465058 ITAT Delhi-AT dismissed the revenue's appeal and allowed the assessee's cross-objection. It held that service tax reimbursement is not includible in "gross receipts" for computing presumptive income under s. 44BB, as it is a statutory levy recovered and remitted to Government, not consideration for services. Amounts received towards "equipment loss in hole" were treated as capital receipts, being reimbursement for destroyed drilling tools, and thus excluded from s. 44BB gross revenue. On attribution of profit from overseas sale of equipment, the Tribunal accepted the assessee's 2% profit attribution to Indian operations, holding that all comparables, including loss-making or low-margin ones that passed the FAR test, must be considered, yielding an arm's length margin below 2%. Case-Laws Income Tax Fri, 22 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465058