TaxTMI 
TaxTMI 
2015 (1) TMI 571
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....at based on the facts and circumstances of the case, the ld. Commissioner of Income-tax, Appeals-II, Dehradun (CIT) erred holding that receipts of Rs. 87,482,347 on account of offshore supply of material was chargeable to tax in India under section 44BB of the Act as opposed to the appellant's claim that the same was not chargeable to tax in India as the income from these supplies had accrued and arisen to the appellant outside India. Ground No.2 Without prejudice to Ground No.1, that based on the facts and circumstances of the case, the ld.Commissioner of Income-tax, Appeals-II, Dehradun (CIT) erred in not appreciating that even if any part of the transaction of offshore supply of material was executed in India, only such profits coul....
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....the case, the CIT(A) has erred in holding that the income of the assessee was taxable under the provisions of sec. 44BB even though the nature of services rendered by the assessee were in the nature of royalty and FTS and not for a project undertaken by the assessee. (iii) Whether on the facts and circumstances of the case, the CIT(A) has erred in holding that income from equipment rental is not chargeable under section 9(1)(vi) of the I.T. Act, when under its exclusionary clause, income in respect of "second leg" contracts in equipment rental business are not covered u/s 44BB. (iv) Whether on the facts and circumstances of the case, the CIT(A) has erred in holding that the bifurcation of revenues in FTS and Royalty by the AO is without a....
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....r on the facts and circumstances of the case the CIT(A) has erred in holding that interest u/s 234-B was not chargeable in this case by relying upon the decision of Hon'ble Uttarakhand High Court in the case of Maersk (334 ITR 79) whereas the department has contested the issue and has filed SLP before the Apex Court against in the case of Jacobs Civil Incorporated/Mitsubishi involving similar issue. (x) The appellant prays for leave to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal." 4. At the time of hearing before us, both the parties fairly admitted that ground Nos.1 & 2 of the assessee's appeal and all the grounds in the Revenue's appeal are squarely covered by the decisio....
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.... Ground No.4 is only arguments in support of ground No.3. 7. We find this issue to be covered in favour of the assessee by the decision of ITAT in the case of Sedco Forex International Drilling Inc. vide ITA No.504/Del/2013, wherein the ITAT held as under:- "3. We have heard both the sides and perused the material placed before us. We find that this issue is covered in favour of the assessee by the decision of ITAT in assessee's own case for AY 2008-09 dated 29th June, 2012 vide ITA No.5284/Del/2011, wherein the ITAT held as under:- "The service tax is a statutory liability like custom duty. Hon'ble Uttarakhand High Court in their decision in Schlumberger Asia Services Ltd. (supra) concluded that reimbursement of custom duty paid....
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....cision of ITAT in assessee's own case cited supra, direct the Assessing Officer to exclude service tax from the gross receipts for the purpose of determining the income under Section 44BB of the Income-tax Act, 1961. Accordingly, ground Nos.1 & 2 of the assessee's appeal are allowed." 8. Respectfully following the above decision of ITAT and the decision of Hon'ble Uttarakhand High Court in the case of Director of Income Tax (International Taxation) and Another Vs. Schlumberger Asia Services Ltd. - [2009] 317 ITR 156, we direct the Assessing Officer to exclude service tax from the gross receipt for the purpose of determining the income under Section 44BB of the Income-tax Act, 1961. Accordingly, ground Nos.3 & 4 of the assessee&....