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Inclusion of service tax receipts, u/s 44BB of IT Act

Merely because the service tax was ultimately payable to the Government that by itself cannot be a reason to say that the amount of service tax collected by the assessee is not incredible in the total sum for the purpose of section 44BB.

ITAT, DELHI BENCH ‘I’ : NEW DELHI

DDIT (Int’l Taxation)

v

Technip Offshore Contracting BV

ITA No. 4613/D/07

January 16, 2009



RELEVANT EXTRACTS:

5.6 In the present case, it is not in dispute that the assessee company has realized service tax on account of providing services and facilities in connection with the exploration or extraction of minerals oils in India. The service tax so realized is a part of receipts received by the assessee from ONGC. The service tax realized by the assessee is in respect of services specified under section 44BB and rendered by it to ONGC. The Hon'ble jurisdiction! High Court of Uttarakhand has held that it is the sum received by the assessee which is to be taken into account for the purpose of "determining profit u…