TaxTMI 
TaxTMI 
2021 (7) TMI 1356
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.... the case, in holding that the amount received by the assessee on account of 'equipment lost in hole' is not includible in the gross revenue for the purpose of computation of profits under the presumptive provisions of section 44BB of the Act, when the said provisions are a complete code of taxation in themselves and do not distinguish between revenue and capital receipts having made allowance for expenditure including depreciation on capital assets to the extent of 90% of gross revenue. (ii) Whether the CIT (A) has erred in not appreciating the fact that the amount received by the assessee on account of 'equipment lost in hole' is infact the reimbursement of expenses and hence includible in the gross revenue for the purpose of com....
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....pose of providing for a presumptive scheme of taxation u/s 44BB of the Act and obviating the need for maintaining accounts for individual receipts, payments etc. (vii) Whether the CIT (A) has erred in ignoring the ratio of the judgment in the case of M/s Chowringhee Sales Bureau (P) Ltd. (82 ITR 542, SC) wherein the Hon'ble Apex Court has held that the Sales Tax collected by an assessee in the ordinary course of its business forms part of its business receipts. Owing to the inherent similarity in the nature of sales tax and service tax, the ratio of the judgment in the said case is directly applicable to the instant case. (viii) The appellant prays for leave to add, amend, modify or alter any grounds of appeal at the time ....
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....hand High Court and subsequently by the Hon'ble Supreme Court we do not find any error or infirmity in the findings of the CIT(A) grounds relating to the first issue are dismissed. 9. Facts relating to the second issue are that the assessee has claimed that service tax has no profit element in it and is collected on account of statutory requirement and, therefore, it is not taxable u/s.44 BB of the Act. The AO took the view that service tax has the profit element and, therefore, includible in the gross turnover of the assessee. This issue has also been considered by the Hon'ble Uttarakhand High Court in assessee's own case in 104 taxmann.com 353. The relevant findings read as under :- 10. Since the issue is now well settled in favour ....
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....tion or production of mineral oils. Reimbursement of service tax by the service recipient to the service provider, representing the amount of tax already paid by the service provider to the Government, would not constitute a part of the amount received for the services rendered by the service provider-assessee to the service recipient-ONGC, much less a part of the amount received for services rendered by the assessee in the prospecting for or the extraction or production of mineral oils. (III) SECTION 44BB(3): ITS SCOPE: 46. Sri H.M. Bhatia, learned Senior Standing Counsel for Income Tax, would submit that, assuming that there was no provision like Section 44BB in the Statute, the assessee would have shown reimbursem....
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....), if it keeps and maintains such books of accounts, and other documents, as are required under Section 44AA(2), and gets its accounts audited and furnishes a report of such audit as is required under Section 44AB. In case an assessee complies with these requirements, the assessing officer is, thereafter, required to 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. 49. In effect, Section 44BB(3) gives the assessee an option. Instead of having ten percent of the aggregate of the sum, specified in clauses (a) and (b) of Section 44BB (2), treated as its income from profits and gains from busi....