TaxTMI 
TaxTMI 
2023 (10) TMI 379
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....ee of being heard. The Assessment order passed is against the principle of natural justice. 3. Without prejudice to above and in law and in facts and circumstances of the case, the Ld. AO erred in not computing the income of Assessee u/s 44BB(1) of the Act. 4. In facts and circumstances of the case, the Ld. AO erred in computing the Income of the Assessee as per Section 44DA of the Act. 5. Without prejudice to above and in law and circumstances of the case, the Ld. AO erred in disallowing the cost of materials of Rs. 493,200/- on the ground that the expense could not be verified. 6. Without prejudice to above and in law and circumstances of the case, the Ld. AO has erred in disallowing the expense of Rs 10,78,358/- u/s 40a(ia) of the Act for non deduction of TDS. 7. Without prejudice to above and in law and circumstances of the case, the Ld. AO has erred in denying the claim of depreciation and amortization of Rs. 49,75,184/-. 8. Without prejudice to above and in law and circumstances of the case, the Ld. AO erred in disallowing expense of Rs. 11,660/- on the ground that they cannot be verified. 9. Without prejudice to above and in law and circumstances of the case, t....
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.... objections are rejected. It is seen that the assessee has adopted similar approach of non compliance in the previous proceedings also. The DRP had in the earlier period in para 4.3 of its directions directed to AO to consider the submissions after affording a fresh opportunity to the assessee. Respectfully following the same, this panel also directs that AO to grant a reasonable opportunity to the assessee within the time available under law to furnish necessary details to help the AO arrive at correct income assessment. The assessee should also extend full and timely cooperation to the AO by furnishing required material to help arrive at correct Income determination. Further. the plea against the initiation of proceedings u/s 271G is premature, hence no directions are required at this stage." 4. In view of the directions of the DRP, as mentioned above, fresh opportunity was accorded to the assessee by notice dated 28.10.2015, to furnish all evidence by 16.11.2015 which assessee would like to rely upon and which have not been filed earlier during assessment proceedings. Vide reply dated 16.11.2015 and 24.11.2015 written submissions alongwith evidences were Died by the assessee ....
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....pts shown in P/L account in respect of well testing services (WT) were found to be not in respect of any business activity in respect of this service/contract and therefore it is clear that the claim of depreciation is not genuine. (iv) The assessee's claim of allow-ability of expenses amounting to Rs. 2,74,500/-, addition on account of which was made in the draft assessment order owing to claim of expenses which were found to be not pertaining to the year under consideration i.e. F.Y. 2011-12, was examined and not found acceptable. Vide reply dated 16.11.2015 assessee has only stated that these expenses were prior period expenses on account of "transportation charges" which were not expended in previous years since there were some pending issues and disputes with the supplier ND Mahatre and got settled during the current year i.e. A.Y. 2012-13. The assessee's submission are not acceptable since assessee is following and maintaining books of accounts on "Mercantile basis" since last many years, as mentioned in 3CD report, and has also not shown any such prior period expenses in the Audit report. Also no provision for such expenses has been created in the books of account for ....
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....f taking a divergent stand from the view taken by this Tribunal in AY 2009-10 in respect of contract with ONGC which is continuing during this year also. However, with regard to contract entered with the Petrogas E&P LLC, we find that the same was entered for provision of MUD services on service contract to drill 04 number of wells with water based mud system. Infact this contract with Petrogas was entered as a consortium of Oil exploration company with shares of Petrogas @20%; share of Gas Authority of India Ltd of 20%; share of Gujarat State Petroleum Corporation Ltd of 20%; share of Hindustan Petroleum Corporation of 20%; share of India Oil Corporation of 20% and assessee herein. The nature of services rendered under this Petrogas contract has already been detailed herein (supra). From the same it is evident that the services provided by the assessee are in connection with prospecting/ extraction/ production of mineral oil and hence, its activities would be squarely covered within the ambit of provision of section 44BB of the Act. We also find similar services were rendered by the assessee in the past and the same had been subject matter of adjudication of this Tribunal for AY 2....
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....and gains of such business chargeable to tax under the head "Profits and gains of business or profession" : Provided that this sub-section shall not apply in a case where the provisions of section 42 or section 44D or section 44DA or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. (2) The amounts referred to in sub-section (1) shall be the following, namely :- (a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and (b) the amount received or deemed to be received in India by or on behalf of the assessee on account of the provision of services and facilities in connection with, or supply of plant and 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....