AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 379
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....O erred in not affording a proper opportunity to the Assessee 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....
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....ts of law. Therefore, respectfully following the earlier DRP directions and in line with the considered directions given therein, the 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 earlie....
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....of expenses nor could it prove that conditions required for claim of depreciation are satisfied when there was no business activity during the year for WT services. The receipts 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 ....
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....ich order has been approved by this Tribunal for AY 2009-10 in ITA No. 5109 and 5110/Del/2013 dated 28.02.2014 in assessee's own case in respect of contract with ONGC. Hence, there is no scope of 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 amb....
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....or to be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits 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 pla....
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.... 23. Further, the Hon'ble Delhi High Court also in the case of CWT Vs. Meattles (P) Ltd reported in 156 ITR 569 had held "whether the revenue authorities take a particular view of the statutory provision in the income tax assessment and later on realise that it was mistaken view, then they cannot be estopped from taking correct view of the statutory provision later on." Further, Hon'ble Supreme Court in the case of Director of Inspection of Income Tax Vs. Pooran Mall and sons reported in 96 ITR 390 had held as under:- The question whether a certain provision of law is directory does not fall to be decided on different standards because it is found in a taxing statute. There is no rule that every provision in a taxing statute is mandatory. The strict construction that a citizen does not become liable to tax unless he comes within the specific words of a statute is a different proposition. That a person cannot be taxed on the principle of estoppel does not admit of much argument. Article 265 of the Constitution lays down that no tax shall be levied except when authorised by law. 24. In any case, the elaborate circular has been issued by the CBDT vide Circul....