2025 (8) TMI 209

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....er on the facts and circumstances of the case, the Ld.CIT(A) has erred in ignoring the effects of the amendment brought in vide Finance Act, 2010 w.e.f. 01.04.2011, in terms of which income covered by section 44DA has been specially excluded from the scope of section 44BB for Asstt. Years 2022-23 (the year under consideration) onwards. 2. Whether on the facts and the circumstances of the case, the Ld.CIT(A)has erred in reversing the action of the AO who, having held that the assessee's revenues on account of aforesaid services under contracts with various entities are liable to be taxed u/s 44DA rightly estimated the income of the assessee by applying 25% rate of profit on gross receipts in the absence of books of accounts and details....

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....come by considering revenue received amounting to INR 11,31,45,762/- in respect of its contracts with Oil Natural Gas Corporation Limited for hiring of services for 4C-3D OBN data processing & interpretation of data D1 to be in the nature of fees for technical services under section 9(1)(vii) of the Act. 5. Aggrieved by the assessment order dated 11/03/2024, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 20/06/2024, deleted the disallowance made by the A.O. by following the ratio laid down by the Special Bench of the Tribunal in Assessee's own case for Assessment Year 2011-12 in ITA No. 6436/Del/2014 and 6536/Del/2014 and the Judgments of High Courts. 6. As against the order of the Ld. CIT(A) dated....

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....merit, therefore sought for dismissal of the Appeal of the Revenue. 8. We have heard both the parties and perused the material available on record. The Ld. CIT (A) while deciding the issue in favour of the Assessee, relied on the order of Assessee's own case for Assessment Year 2011-12 in ITA No. 6536/Del/2014 and 6436/Del/2014, wherein the Special Bench of the Tribunal held that the amount received by the Assessee in the present case as reimbursement of service tax is not including in the gross turnover for the purpose of computing taxable income u/s 44BB of the Act. The relevant portion of the order of the third member are as under:- "35. Having regard to all the facts of the case and keeping in view the legal position emanating from t....

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....aid earlier by assessee to Government of India, not being an amount paid to assessee on account of providing services and facilities in connection with prospecting for, or extraction or production of mineral oils in India, would not form part of aggregate amount referred to in clauses (a) and (b) of sub-section (2) of Section 44BB of the Act. To the similar effect is the decision of Hon'ble High Court in the case of Director Income-tax Vs. Mitchell Drilling International (P.) Ltd. [2016] 380 ITR 130 (Del.), wherein it was held that the service tax collected by the assessee for passing it on to Government was not to be included in gross receipt in terms of Section 44BB(2) read with Section 44BB (1) of the Act for the purpose of computing pre....