2015 (11) TMI 1546

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....on 44BB of the I.T. Act, 1961. In this regard the learned D.R. drew out attention to the order of Hon'ble Delhi High Court in the case of Director of Income Tax vs. Mitchell Drilling International P. Ltd in ITA 403/2013 wherein the court has held as under: - "14. In the considered view of the Court, both the aforementioned decisions were rendered in the specific contexts in which the questions arose before the Court. In other words the interpretation placed by the Court on the expression "trading receipt' or 'turnover' in the said decisions was determined by the context. The later decision of the Supreme Court in CIT v. Lakshmi Machine Works (supra) which sought to interpret the expression 'turnover' was also in another specifi....

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....the considered view of the Court, the decision of the Supreme Court in Lakshmi Machines Works (supra) is sufficient to answer the question framed in the present appeal in favour of the Assessee. The service tax collected by the Assessee does not have any element of income and therefore cannot form part of the gross receipts for the purposes of computing the 'presumptive income' of the Assessee under Section 44 BB of the Act. 16. The Court concurs with the decision of the High Court of Uttarakhand in DIT v. Schlumberger Asia Services Ltd (supra) which held that the reimbursement received by the Assessee of the customs duty paid on equipment imported by it for rendering services would not form part of the gross receipts for the purpo....

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....d in the negative i.e. favour of the Assessee and against the Revenue." 2.1 Nothing contrary was brought to our knowledge. Facts being similar, so following the same reasoning we hold that the service tax would not form part of gross receipt for the purpose of income computation under section 44BB of the Act. 3. Next issue is with regard to levy of interest under section 234A of the Act, which is consequential to the earlier issue. 4. In the result, Appeal filed by the assessee is allowed as indicated above. 5. Revenue has filed the following grounds in its appeal: - "1. Whether on the facts and under the circumstances of the case, the Hon'ble DRP was correct in holding that interest u/s 234B is not leviable in the ....