2022 (11) TMI 385

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....ANDRA KHULBE Presence:- Mr. Hari Mohan Bhatia, learned counsel for the appellant-Department. Mr. Pulak Raj Mallick, Mr. Salil Kapoor, Ms. Ananya Kapoor, Mr.Tarun Chanana, Mr. Chetan Joshi, Mr. Nishant Thakkar and Ms. Jasmin Amalsadvala, learned counsel for the respondents. JUDGMENT: (Per Shri Vipin Sanghi, Chief Justice) These income tax references arise from the orders passed by the Income Tax Appellate Tribunal, Dehradun Bench, New Delhi in different ITAs' preferred by the Revenue. The issue, which came up for consideration before the ITAT, was with regard to the interpretation of Sections 44 BB(1) and 44 BB(2) of the Income Tax Act. The specific issue, that arose for consideration was, whether the service tax collected by ....

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....rd of Direct Taxes for preferring a further appeal to the Supreme Court. 4. Mr. Bhatia has sought to argue before us that the findings returned by the Full Bench are, in fact, in favour of the Revenue on the interpretation of Section 44BB of the Income Tax Act. He submits that the only reason why the Full Bench decided the appeals against the Revenue, was the decision of the Hon'ble Division Bench of the Delhi High Court in DIT vs. Mitchell Drilling International (P.) Ltd., (2016) 380 ITR 130 (Delhi). 5. Mr. Bhatia has taken us to the judgment of the Full Bench in DIT (International Taxation) & others vs. Schlumberger Asia Services Limited (Supra). A perusal of the said judgment shows that the Full Bench has arrived at its interpretat....

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....on 44BB(2) would only be the amount paid by the ONGC to the assessee on account of (i) provision of services in connection with or (ii) supply of plant and machinery on hire used in, the prospecting, extraction and production of mineral oils. As the amount reimbursed by the ONGC, towards the service tax paid by assessee earlier to the Government, is not an amount paid to the assessee towards the services provided by the latter in connection with the prospecting, extraction or production of mineral oils, it is not required to be included in the amounts specified in clauses (a) and (b) of Section 44BB(2). 29. As shall be elaborated later in this order, service tax is a tax levied on services, and cannot be treated as the Service itse....