TaxTMI 
TaxTMI 
2016 (2) TMI 267
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.... (a) Inclusion of demobilization revenue in the gross receipts. (b) Rejection for claim for deduction of credit note issued. (c) Charging of interest u/s 234B and 234C of the Act. The Ld A.R did not press the ground relating to Non-grant of credit of TDS. Other grounds are general in nature and hence they do not require any adjudication. 2. The assessee is a foreign company incorporated in United Kingdom. It is engaged in the business of providing services in connection with prospecting, extraction and exploration of oil and gas. Another company named M/s Allseas Marine Contractors SA (hereinafter "Allseas") was awarded a contract by M/s Reliance Industries Ltd to undertake construction of offshore facilities for d....
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....pertaining to the entire period of 36 days is includible in the revenue u/s 44BB of the Act is supported by the above said two decisions. Accordingly, we do not find any infirmity in the decision taken by him on this issue and accordingly affirm the same. 5. The next issue relates to the rejection of claim for deduction of credit note issued by the assessee to M/s Allseas. The assessee had deducted a sum of Rs. 7.96 crores from the gross revenue, while computing income u/s 44BB of the Act. The assessing officer considered the same as "reimbursement of freight charges" and accordingly held that such kind of reimbursements are also includible in the Gross revenue and accordingly rejected the said claim. Before the Ld DRP, the assessee subm....
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....Y 2010-11, the assessee had also raised invoice upon M/s All seas for a sum of Rs. 3.69 crores. Hence, after adjustment of Rs. 3.69 crores against the credit note of Rs. 11.65 crores, the assessee claimed deduction of Rs. 7.96 crores. The Ld A.R submitted that the assessing officer was not justified in rejecting the claim for deduction of Rs. 7.96 crores, as the same represents cost of fuel supplied by M/s Allseas and the gross amount has already been offered to tax in the earlier years. 7. We heard the parties on this issue. The assessee has computed the income u/s 44BB of the Act, which reads as under:- "[Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils. ....
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....nd machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India. [(3) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee.] Expla....
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....item of expenditure for the assessee and hence the same is required to be allowed as deduction while computing profits and gains of business. However, such a claim can be allowed only if the profits and gains of business is computed under normal provisions of the Act. In the instant case, the profits and gains is computed at 10% of the gross receipts as per the deeming provisions of sec. 44BB of the Act. When the profits and gains of business is computed under deeming provisions, then the same is required to be computed strictly in accordance with the methodology specified in that section. Sec. 44BB of the Act does not provide for deduction of any of the expenditure. Hence, even though the cost of fuel supplied by M/s Allseas to the assesse....