2014 (1) TMI 24

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....ound No.1 That the ld.CIT(A) has erred on facts and in law in affirming the action of the AO in holding that the amount aggregating to Rs. 284,018,951/- received by the appellant on account of reimbursement of service lax, is to be included in the gross receipts u/s 44BB of the Income Tax Act, 1956. Ground No.2 That the ld.CIT(A) has erred on facts and In law in affirming the action of the AO in holding that the amounts aggregating to Rs. 239,920,538/- received by the appellant from its customers as reimbursement of actual expenses (material and catering recharge) incurred by the appellant on their behalf is to be included in the gross receipts u/s 44BB of the Income Tax Act, 1961 (the Act). Ground No.3 That based on the fact....

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....liburton Offshore Services Inc.(supra). Ground no. 2 & 3 4. Apropos ground no.2, the assessee's representative (AR) submitted that the service tax paid to the Government of India by the assessee is reimbursed by the ONGC on production and submission of original challan by which service tax is deposited to the government treasury. The AR further contended that the ONGC reimbursed 100% amount of service tax paid by the assessee to the Government and the amount is always equivalent to the amount shown in the payment challan submitted by the assessee before the ONGC accounts department. The AR fortified his argument with further submission that the assessee is neither earning any income nor incurring any expenses in this regard because th....