2007 (10) TMI 219

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....ction 260A of the Income-tax Act,1961 (hereinafter referred to as "the Act"), has been preferred by the Revenue challenging the order dated March 21, 2006, passed by the Income-tax Appellate Tribunal, Delhi Bench "D", New Delhi, in I. T. A. No. 2887/DEL/2000 for the assessment year 1998-99. 2. The facts, in brief, are that the return of income was filed by a non-resident company M/s B. J. Servi....

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....issioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) held that the assessee was entitled to deduction of Rs. 66,17,495 out of Rs.69,45,264 as Rs. 66,17,495 was received as cost of materials, etc., as the actual reimbursement of expenses of such materials incurred by the assessee in the execution of the contract with the ONGC and these reimbursements were on actual basis and w....

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....hat the amount received by the non-resident company as reimbursement on account of supply of spare parts cannot be included in the contract receipts for computing taxable profit under section 44BB ?" 8. It is the fact that the amount of Rs. 69,45,264 was received by the assessee-non-resident company for supply of materials which included Rs. 3,27,770 on account of handling charges. 9. Sub-se....

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....ss and petroleum and natural gas. Thus, the amount received by the assessee on account of supply of spare parts is squarely covered under section 44BB. Therefore, the Assessing Officer was right in calculating the 10 per cent. of the total amount of Rs. 69,45,264, which was received by the assessee-non-resident company from the ONGC. The claim of the assessee that the amount of Rs. 66,17,495 could....