2012 (11) TMI 762

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....e assessment year 2006-2007, assessee filed its return of income disclosing therein that it has made taxable income of Rs. 6,18,35,432/-. Notice under Section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') was issued to the appellant. In response to the notice, assessee informed the Assessing Officer that it has received gross revenue of Rs.158 and odd crores on account of its Indian operations. It held out that of such gross revenue, Rs.61 and odd crores it received on account of providing services or facilities in connection with prospecting for extraction or production of mineral oils. It submitted that it received Rs.40 lacs and odd on account of reimbursement revenue and the remaining Rs.96 crores and odd ....

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....nt, power under Section 263 of the Act was exercised. The reason for exercising such power appears to be not bringing receipt of the revenue of the assessee from Indian customers to the tune of Rs.96 and odd crores on account of sale of goods/materials outside India under Section 44BB of the Act and for adding the same in the taxable income of the assessee under Section 9(1)(i) of the Act read with Rule 10 of the Rules. The matter was, then, taken before the Tribunal by the appellant. The Tribunal held against the appellant principally on the ground that under a contract entered by the appellant with O.N.G.C., payments were made both for providing service as well as for providing goods/materials, and that, the object of Section 44BB of the ....

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....ant has not taken any step in respect of increase of the taxable income of the assessee for the relevant assessment year by 2 per cent of Rs.96 and odd crores. It was submitted that if anyone is aggrieved for 2 per cent additional tax liability of the assessee, as determined by the Assessing Officer, it was the assessee alone and no one else. The same can not be claimed to have caused any prejudice to the revenue. 3. A look at the assessment order, in respect whereof power under Section 263 of the Act was exercised, would amply make it clear that the Assessing Authority did not at all make any endeavour to ascertain, whether Rs.96 and odd crores were received by the assessee for and in respect of services rendered by the assessee or the ....