2009 (7) TMI 51

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....Monica Pant, Advocates for the appellants. Shri N. Venkatraman, Sr. Advocate assisted by Shri Chetan Joshi, Advocate for the respondent. JUDGMENT Prafulla C. Pant, J. - This appeal, preferred under Section 260-A of Income Tax Act, 1961 (herein after referred as the Act), is directed against the order dated 13.04.2007, passed in ITA No. 4180/(Del)/2006 (Assessment Year 2002-03), by Income ....

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....on certain amounts, received by it towards the reimbursement of expenses, which included custom duty, and accordingly assessed the income to Rs. 19,72,63,659/-. Aggrieved by said order, the assessee filed appeal before the Commissioner of Income Tax (for short CIT). The said authority vide its order dated 11.10.2006, partly allowed the appeal holding that the custom duty, paid in importing the equ....

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...., 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." 6. Attention of this Court is also drawn to the princi....

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....these cases refer to the reimbursement of the custom duty to the assessee. 7. Learned counsel for the respondent submitted that for import of the machinery or equipment, liability to pay the custom duty was on the Oil and Natural Gas Corporation (for short ONGC), who has hired the services of the assessee in contract. It is further submitted that there cannot be element of profit in reimburseme....