TaxTMI 
TaxTMI 
2020 (1) TMI 1737
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....e I.T.Act, 1961 for the AY 2015-16. 2. The assessee has raised the following grounds of appeal:- 1. Ground 1: Inclusion of service tax for the purpose of computing presumptive income under Section 44B of the Income-tax Act, 1961 ('the Act') 1 On the facts and the circumstances of the case and in law, the learned ACIT has erred in including an amount of Rs.57.45,67,721, being the amount of service tax charged, to the total revenue for the purpose of computing presumptive income under Section 44B of the Act. 1.2 On the facts and the circumstances of the case and in law, the learned ACIT has erred in not following the order passed by the Mumbai Bench of Hon'ble Income Tax Appellate Tribunal ('ITAT') in App....
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....oceeding under section 27 1(1)(c) of the Act. 3.2 It is prayed that the learned ACIT be directed to drop the penalty proceeding under section 27 1(1) (c) of the Act. The Appellant craves leave to add to, alter, amend, vary, omit or substitute the aforesaid grounds of appeal or add a new ground or grounds of appeal at any time before or at The time of hearing of this appeal as it may he advised. 3. The brief facts of the case are that the assessee company is incorporated under the Companies ordinance of Hong Kong and it is engaged in the business of transportation of cargo and operation of ships in international traffic. Its income comprises of freight income and ancillary detention charges such as terminal handling char....
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.... directions of the Ld. DRP passed final assessment order u/s 143(3) r.w.s. 144C(13) of the I.T.Act, 1961 on 27/09/2018 and made additions towards @ 7.5% profit estimated on service tax collected from rendering services to the customers and made additions of Rs. 4,30,92,579/-. Aggrieved by the final assessment order, the assessee is in appeal before us. 4. The first issue that came up for our consideration from ground No. 1 of assessee appeal is inclusion of service tax for the purpose of computing presumptive income u/s 44B of the I.T.Act, 1961. The Ld. AR for the assessee, at the time of hearing, submitted that this issue is squarely covered in favour of the assessee by the decisions of ITAT, Mumbai bench in assessee's own case for AY 2....
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....een considered by the Hon'ble Bombay High Court, in the case of PCIT(IT) vs Boskalis International Dredging International CV. (supra), where the Hon'ble High Court by following the decision of Hon'ble Delhi High Court, in the case of DIT-I vs. Mitchell Drilling International Pvt.Ltd. and other cases held that service tax collected by the assessee on the amount received by it for rendering services is not to be included in the gross receipts in terms of section 44BB(2) r.w.s. 44BB(1) of the I.T.Act, 1961. 7. In this view of the matter and respectfully following the case laws discussed hereinabove, we direct the Ld. AO to excluded service tax collected from gross receipts from operations for the purpose of computation of presumptive income....