CIT v. Mitchell Drilling International P. Ltd.

380 ITR 130High Court2016#1357 most cited

What is CIT v. Mitchell Drilling International P. Ltd. authority for?

For computing presumptive income under Section 44BB, gross receipts do not include service tax reimbursements received from a client (like ONGC) if such amounts are not payments for services or plant/machinery directly used in the prospecting, extraction, or production of mineral oils.

84

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Mitchell Drilling International P. Ltd. · 380 ITR 130 · Section 44BB · gross receipts · presumptive income · service tax reimbursement · mineral oils · ONGC · oil exploration services

Sections most often in play

Section 44BBSection 1961Section 44DASection 9(1)(vi)Section 9(1)(vii)Section 143(3)Section 115ASection 115A of the Income Tax Act

Issues it is cited on

section 44dasection 293section 44bbsection 44bsection 44deconomic adjustmentsection 255(4)section 115asection 42far analysissection 92c(2)interest on refund

Judgments citing CIT v. Mitchell Drilling International P. Ltd.

Commissioner Of Income Tax vs. Baker Hughes Asia Pacific Limited

Appeal is disposed of

ITA/30/2015HC Uttarakhand10 Feb 2025

Bench: HON'BLE MR JUSTICE G. NARENDAR,HON'BLE MR. JUSTICE ASHISH NAITHANI

Section 234BSection 260Section 44B

…nder:- “62. Except to state that the said judgment needs re- consideration, no justifiable cause has been shown as to why this Court should take a view different from that of the Delhi High Court, in Mitchell Drilling International Pvt. Ltd. (2016) 380 ITR 130 (Delhi), more so when the Division Bench of the Delhi High Court has taken a view similar to that of a Division Bench of this Court in M/s Schlumberger Asia Services Ltd. (2009) 317 ITR 156. As the revenue has not been able to show just cause for this Court to take a different view, we see no reason to differ with the Division Bench judgme…

Seadrill International Limited, Mumbai vs. Assistant Commissioner of Income Tax-International Taxation-4(2)(1), Mumbai

ITA 4700/MUM/2023[2021-22]Status: DisposedITAT Mumbai07 Jan 2025AY 2021-22
Section 143(3)Section 145ASection 270ASection 44B

…rovided by the assessee, which can form part of the gross receipts for the purposes of computation of gross income under Section 44BB(1) read with Section 44BB(2). DIT v. Mitchell Drilling International (P.) Ltd. [2015] 62 taxmann.com 24/234 Taxman 818/[2016] 380 ITR 130 (Delhi). On its literal construction, Section 44BB(2) would only be the amount paid by the ONGC to the assessee on account of (i) provision of services in connection with or (ii) supply of plant and machinery on hire used in, the prospecting, extraction and production of mineral oils. As the amount reimbursed by the ONGC, towards the service tax…

Servicos De Petroleo Constellation Sa, Mumbai vs. DCIT (International Taxation), Circle-4(2)(1), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 4815/MUM/2023[2021-22]Status: DisposedITAT Mumbai09 Sept 2024AY 2021-22

Bench: Ms. Kavitha Rajagopal, Jm & Smt Renu Jauhri, Am Servicos De Petroleo Constellation Sa Dcit(International Taxation), India Project Office: Circle-4(2)(1) Unit No. 1803 To 1808, 18Th Floor, Mumbai B-Wing, Business Park, Vs. Veer Savarkar Road, Part Site, Vikhroli (W), Mumbai-400 079

For Appellant: ShriPrashant ShahFor Respondent: Smt. Shaileja Rai &
Section 143(2)Section 143(3)Section 144C(1)Section 44B

…in the case of DIT (IT) & others vs. Schlumberger Asia Services Limited in ITA No. 40 of 2012 vide order dated 12.04.2019 / [2019] 414 ITR 1 (Uttarakhand)(FB), Hon’ble Delhi High Court in the case of DIT vs. Mitchell Drilling International (P) Ltd. [2016] 380 ITR 130 (Delhi) and the decision of the co-ordinate bench in the case of ACIT Int. Taxation vs. McDermott International Management (in ITA Nos. 2373 & 2374/Del/2023 vide order dated 09.02.2024), where the said issue is said to have been covered in favour of the assessee. The ld. AR also relied on the CBDT Circular No. 1/2014 dated 13.01.2014 and CBDT C…

ACIT Int. Taxation Circle-2(2)(1), Delhi vs. Mcdermott International Managemen, Panama

In the result, appeal of the Revenue for both the AYs 2020-21 and 2021-22 are dismissed

ITA 2374/DEL/2023[2021-22]Status: DisposedITAT Delhi09 Feb 2024AY 2021-22

Bench: Dr. Brr Kumar & Ms. Astha Chandra

For Appellant: Shri Amit Arora & Vishal Misra, CAFor Respondent: Shri Vizay B. Vasanta, CIT, DR
Section 143(3)Section 30Section 448Section 44B

…ned. It has been held in the said order that service tax being a statutory levy would not form a part of the gross receipt for the purposes of section 4488 The relevant extract of the aforesaid judgement CIT versus Mitchell Drilling International Pty. Limited 380 ITR 130 is as under: "11. It is in this context that the question arises whether the service tax collected by the Assessee and passed on to the Government from the person to whom it has provided the services can legitimately be considered to form part of the gross receipts for the purposes of computation of the Assessee's 'presumptive income' under Secti…

ACIT Intl. Taxation Circle 2(2)(1), New Delhi vs. Mcdermott International Management, Panama

In the result, appeal of the Revenue for both the AYs 2020-21 and 2021-22 are dismissed

ITA 2373/DEL/2023[2020-21]Status: DisposedITAT Delhi09 Feb 2024AY 2020-21

Bench: Dr. Brr Kumar & Ms. Astha Chandra

For Appellant: Shri Amit Arora & Vishal Misra, CAFor Respondent: Shri Vizay B. Vasanta, CIT, DR
Section 143(3)Section 30Section 448Section 44B

…ned. It has been held in the said order that service tax being a statutory levy would not form a part of the gross receipt for the purposes of section 4488 The relevant extract of the aforesaid judgement CIT versus Mitchell Drilling International Pty. Limited 380 ITR 130 is as under: "11. It is in this context that the question arises whether the service tax collected by the Assessee and passed on to the Government from the person to whom it has provided the services can legitimately be considered to form part of the gross receipts for the purposes of computation of the Assessee's 'presumptive income' under Secti…

Cathay Pacific Airways Ltd., Kolkata vs. ACIT, Cir-1(1), It, Kol, Kolkata

In the result, all the appeals of the assessee are allowed

ITA 467/KOL/2023[2018-19]Status: HeardITAT Kolkata09 Jan 2024AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Girish Agrawalita.420/Kol/2023 &

For Appellant: Shri Pratyush Jhunjhunwala, AdvocateFor Respondent: Shri Abhijit Kundu, CIT
Section 143(3)Section 44B

…/Kol/2023 Cathay Pacific Airways Ltd., A.Y: 2016-17 to 2018-19 & Hong Kong Dragon Airlines Ltd., AY 2016-17 5.2 Reliance was also placed by the assessee on several decisions which are listed below: (i) DIT Vs. Mitchell Drilling International Pvt. Ltd. (2016) 380 ITR 130 (Del.) ; ii) Islamic Republic of Iran Shipping Lines Vs. DCIT (2011) 46 SOT 101 (Mum. Trib.); iii) DIT Vs. M/s. Schlumberger Asia Service ltd. (2009) 317 ITR 156 (Uttarkhand HC); iv) Sundowner Offshore International (Bermuda) Ltd. Vs. ADIT (2015) 70 SOT 656 (Delhi Trib.); v) Orient Overseas Container Line Ltd. Vs. ADIT (2013) 60 SOT 196 (Mum. Tri…

Cathay Pacific Airways Limited, Kolkata vs. ACIT, Circle-(1), It-Kol., Kolkata

In the result, all the appeals of the assessee are allowed

ITA 420/KOL/2023[2016-17]Status: HeardITAT Kolkata09 Jan 2024AY 2016-17

Bench: Shri Sonjoy Sarma & Shri Girish Agrawalita.420/Kol/2023 &

For Appellant: Shri Pratyush Jhunjhunwala, AdvocateFor Respondent: Shri Abhijit Kundu, CIT
Section 143(3)Section 44B

…/Kol/2023 Cathay Pacific Airways Ltd., A.Y: 2016-17 to 2018-19 & Hong Kong Dragon Airlines Ltd., AY 2016-17 5.2 Reliance was also placed by the assessee on several decisions which are listed below: (i) DIT Vs. Mitchell Drilling International Pvt. Ltd. (2016) 380 ITR 130 (Del.) ; ii) Islamic Republic of Iran Shipping Lines Vs. DCIT (2011) 46 SOT 101 (Mum. Trib.); iii) DIT Vs. M/s. Schlumberger Asia Service ltd. (2009) 317 ITR 156 (Uttarkhand HC); iv) Sundowner Offshore International (Bermuda) Ltd. Vs. ADIT (2015) 70 SOT 656 (Delhi Trib.); v) Orient Overseas Container Line Ltd. Vs. ADIT (2013) 60 SOT 196 (Mum. Tri…

Hong Kong Dragon Airlines Limited, Kolkata vs. ACIT, Cir-1(1), It-Kolkata, Kolkata

In the result, all the appeals of the assessee are allowed

ITA 419/KOL/2023[2016-17]Status: HeardITAT Kolkata09 Jan 2024AY 2016-17

Bench: Shri Sonjoy Sarma & Shri Girish Agrawalita.420/Kol/2023 &

For Appellant: Shri Pratyush Jhunjhunwala, AdvocateFor Respondent: Shri Abhijit Kundu, CIT
Section 143(3)Section 44B

…/Kol/2023 Cathay Pacific Airways Ltd., A.Y: 2016-17 to 2018-19 & Hong Kong Dragon Airlines Ltd., AY 2016-17 5.2 Reliance was also placed by the assessee on several decisions which are listed below: (i) DIT Vs. Mitchell Drilling International Pvt. Ltd. (2016) 380 ITR 130 (Del.) ; ii) Islamic Republic of Iran Shipping Lines Vs. DCIT (2011) 46 SOT 101 (Mum. Trib.); iii) DIT Vs. M/s. Schlumberger Asia Service ltd. (2009) 317 ITR 156 (Uttarkhand HC); iv) Sundowner Offshore International (Bermuda) Ltd. Vs. ADIT (2015) 70 SOT 656 (Delhi Trib.); v) Orient Overseas Container Line Ltd. Vs. ADIT (2013) 60 SOT 196 (Mum. Tri…

DCIT, Circle- 2, International Taxation, Dehradun vs. Gaia Ship Management As, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 5304/DEL/2018[2015-16]Status: DisposedITAT Dehradun22 Dec 2023AY 2015-16

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Us(Through Video Conferencing)

For Appellant: Ms. Ananya Kapoor, AdvFor Respondent: Sh. Mayank Kumar, Adit CIT DR
Section 143(3)

…on‟ble Apex Court in case of ONGC vs. CIT 376 ITR 306. 9. The Ld. AR submitted that the CIT(A) has rightly deleted this additions. The Ld. AR relied upon the decision of the Hon‟ble Delhi High Court in case of DIT vs. Mitchell Drilling International (P.) Ltd. 380 ITR 130. 10. We have heard both the parties and perused all the relevant material available on record. The Hon‟ble Delhi High Court in case of Mitchell Drilling International (P.) Ltd. (supra) held as under: “17. The Court accordingly holds that for the purposes of computing the „presumptive income‟ of the assessee for the purposes of Section 44BB of the…

DCIT, Circle- 1, International Taxation, Dehradun vs. Gaia Ship Management As, Mumbai

In the result, both the appeals of the revenue are dismissed

ITA 7476/DEL/2017[2014-15]Status: DisposedITAT Dehradun22 Dec 2023AY 2014-15

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Us(Through Video Conferencing)

For Appellant: Ms. Ananya Kapoor, AdvFor Respondent: Sh. Mayank Kumar, Adit CIT DR
Section 143(3)

…on‟ble Apex Court in case of ONGC vs. CIT 376 ITR 306. 9. The Ld. AR submitted that the CIT(A) has rightly deleted this additions. The Ld. AR relied upon the decision of the Hon‟ble Delhi High Court in case of DIT vs. Mitchell Drilling International (P.) Ltd. 380 ITR 130. 10. We have heard both the parties and perused all the relevant material available on record. The Hon‟ble Delhi High Court in case of Mitchell Drilling International (P.) Ltd. (supra) held as under: “17. The Court accordingly holds that for the purposes of computing the „presumptive income‟ of the assessee for the purposes of Section 44BB of the…

DCIT, Circle 2(1)(2), Internatioal Taxation, New Delhi vs. J Ray Mcdermott S.A., New Orleans, Panama

In the result, the appeal of the Revenue is dismissed

ITA 1762/DEL/2023[2018-19]Status: DisposedITAT Delhi21 Dec 2023AY 2018-19

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Amit Arora, CA &For Respondent: Sh. Sanjay Kumar, Sr. DR
Section 44B

…ome Tax Act, 1961 has been settled by the order of the various Hon’ble High Courts. We find that the ld. CIT(A) has rightly deleted the addition based on the judgments of the Hon’ble High Court in the case of DIT Vs. Mitchell Drilling International Pvt. Ltd. (380 ITR 130) and the order of the Co-ordinate Bench of ITAT in the case of DCIT Vs. Baker Hughes Singapore Pte. In ITA No. 6178/Del/2017, order dated 08.02.2022. 5. For the sake of ready reference, the operative part of judgment in the case of DIT Vs. Mitchell Drilling International Pvt. Ltd. (supra) is reproduced below: “that for the purposes of computing t…

DCIT Circle-2(1)(2) Int. Taxation, New Delhi vs. J Ray Mcdermott S.A., Usa

ITA 2282/DEL/2023[2021-22]Status: DisposedITAT Delhi14 Dec 2023AY 2021-22

Bench: Sh. N. K. Billaiya & Ms. Astha Chandra

Section 115ASection 293ASection 42Section 44Section 448Section 44BSection 44D

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.2281/Del/2023 & 2282/Del/2023 Assessment Year: 2020-21 & 2021-22 DCIT(IT) Vs. J Ray MCDERMOTT S. A PF ARIFA, 9th and 10th Circle – 2 (1)(2) New Delhi Floors, Panama West Bouelvard Sants, Maria Business District Panama USA PAN No.AADCJ6385R (APPELLANT) (RESPONDENT) Appellant by Sh. Vizay B Vasanta, CIT DR Respondent by Sh. Amit Arora, CA Sh. Vishal Mishra, CA Date of hearing: 14/12/2023 Date of Pronouncement: 14/12/2023 ORDER PER N. K. BILLAIYA, AM: and 228…

DCIT (It), Circle-2(1)(2), New Delhi vs. J Ray Mcdermott S.A., Usa

ITA 2281/DEL/2023[2020-21]Status: DisposedITAT Delhi14 Dec 2023AY 2020-21

Bench: Sh. N. K. Billaiya & Ms. Astha Chandra

Section 115ASection 293ASection 42Section 44Section 448Section 44BSection 44D

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No.2281/Del/2023 & 2282/Del/2023 Assessment Year: 2020-21 & 2021-22 DCIT(IT) Vs. J Ray MCDERMOTT S. A PF ARIFA, 9th and 10th Circle – 2 (1)(2) New Delhi Floors, Panama West Bouelvard Sants, Maria Business District Panama USA PAN No.AADCJ6385R (APPELLANT) (RESPONDENT) Appellant by Sh. Vizay B Vasanta, CIT DR Respondent by Sh. Amit Arora, CA Sh. Vishal Mishra, CA Date of hearing: 14/12/2023 Date of Pronouncement: 14/12/2023 ORDER PER N. K. BILLAIYA, AM: and 228…

DCIT, Circle- II, Intl. Taxation, Dehradun vs. Western Geco International Ltd., Dehradun

In the result, appeal of the Revenue is dismissed

ITA 4422/DEL/2017[2013-14]Status: DisposedITAT Dehradun21 Nov 2023AY 2013-14

Bench: Shri Challa Nagendra Prasada N D Shrim. Balaganeshआ.अ.सं./ I.T.A. No.4422/Del/2017 िनधा"रणवष"/Assessment Year: 2013-14 Dcit, Western Geco बनाम Circle : Ii, International Ltd., Vs. International Taxation, C/O. Nangia & Co., 3Rd Floor, Ncr Plaza, Dehradun. Municipal No. 24A, New Cantt. Road, Dehradun. Pan No. Aaacw4324J अपीलाथ" / Appellant ""यथ"/ Respondent

For Appellant: Ms. Ananya Kapoor, Adv
Section 44BSection 44DSection 9(1)(vii)

…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 Delhi High Court in the case of Director of 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 presumptive income of the assessee under Section 44BB of the Act. Respectfully following the decision of Ho…

DCIT (International Taxation), Circle-1, Dehradun vs. Baker Hughes Singapore Pte, Mumbai

In the result, appeal is dismissed

ITA 1883/DEL/2018[2014-15]Status: DisposedITAT Dehradun15 Sept 2023AY 2014-15

Bench: Shri Saktijit Dey, Vice- & Shri M. Balaganeshassessment Year: 2013-14 Baker Hughes Singapore Pte., Versus Dcit (International Taxation) C/O Nangla & Co., A-109, Circle-1, Dehradun. Sector 136, Noida. Pan: Aaacb8516F (Appellant) (Respondent) Assessment Year: 2014-15 Dcit (International Taxation) Versus Baker Hughes Singapore Pte., Circle-1, Dehradun. C/O Nangla & Co., A-109, Sector 136, Noida. (Appellant) (Respondent) C.O. No. 132/Del/2018 (In Ita No.1883/Del/2018) Assessment Year: 2014-15 Baker Hughes Singapore Pte., Versus Dcit (International Taxation) C/O Nangla & Co., A-109, Circle-1, Dehradun. Sector 136, Noida. (Appellant) (Respondent) Assessee By : Sh. Amit Arora, C.A. & Sh. Itesh Dodhi, C.A. Revenue By : Sh. Mayank Kumar, Jcit-Dr Date Of Hearing : 23.06.2023 Date Of Pronouncement: 15.09.2023

For Appellant: Sh. Amit Arora, C.A. &For Respondent: Sh. Mayank Kumar, JCIT-DR
Section 44BSection 44DSection 9(1)(vii)

…assessment year 2013-14. While deciding the issue in Revenue’s appeal in ITA No. 6178/Del/2017 in order dated 08.02.2022, the Tribunal after following the decision of Hon’ble Delhi High Court in case of PCIT vs. Mitchell Drilling International Pvt. Ltd., 380 ITR 130, has held that Service Tax and VAT cannot form part of computation of income under section 44BB of the Act. In view of the aforesaid, we decline to interfere with the decision of learned first appellate authority. Grounds are dismissed. 20. In ground No. 10 & 11, the Revenue has challenged the deletion of addition made on account of receipts f…

Baker Hughes Singapore Pte, Noida vs. DCIT (International Taxation), Circle-1, Dehradun

In the result, appeal is dismissed

ITA 5897/DEL/2017[2013-14]Status: DisposedITAT Dehradun15 Sept 2023AY 2013-14

Bench: Shri Saktijit Dey, Vice- & Shri M. Balaganeshassessment Year: 2013-14 Baker Hughes Singapore Pte., Versus Dcit (International Taxation) C/O Nangla & Co., A-109, Circle-1, Dehradun. Sector 136, Noida. Pan: Aaacb8516F (Appellant) (Respondent) Assessment Year: 2014-15 Dcit (International Taxation) Versus Baker Hughes Singapore Pte., Circle-1, Dehradun. C/O Nangla & Co., A-109, Sector 136, Noida. (Appellant) (Respondent) C.O. No. 132/Del/2018 (In Ita No.1883/Del/2018) Assessment Year: 2014-15 Baker Hughes Singapore Pte., Versus Dcit (International Taxation) C/O Nangla & Co., A-109, Circle-1, Dehradun. Sector 136, Noida. (Appellant) (Respondent) Assessee By : Sh. Amit Arora, C.A. & Sh. Itesh Dodhi, C.A. Revenue By : Sh. Mayank Kumar, Jcit-Dr Date Of Hearing : 23.06.2023 Date Of Pronouncement: 15.09.2023

For Appellant: Sh. Amit Arora, C.A. &For Respondent: Sh. Mayank Kumar, JCIT-DR
Section 44BSection 44DSection 9(1)(vii)

…assessment year 2013-14. While deciding the issue in Revenue’s appeal in ITA No. 6178/Del/2017 in order dated 08.02.2022, the Tribunal after following the decision of Hon’ble Delhi High Court in case of PCIT vs. Mitchell Drilling International Pvt. Ltd., 380 ITR 130, has held that Service Tax and VAT cannot form part of computation of income under section 44BB of the Act. In view of the aforesaid, we decline to interfere with the decision of learned first appellate authority. Grounds are dismissed. 20. In ground No. 10 & 11, the Revenue has challenged the deletion of addition made on account of receipts f…

DCIT, Dehradun vs. M/S. Western Geco International Limited, Noida

ITA 6536/DEL/2014[2011-12]Status: DisposedITAT Delhi31 May 2023AY 2011-12

Bench: Sh. N. K. Billaiya & Sh. Anubhav Sharmaassessment Year: 2011-12 Dcit Western Geco International Circle Ii Vs Ltd. International Taxation C/O Srbc & Association Llp 4Th & 5Th Floor, Plot No.2B, Dehradun Noida 201304 Pan No.Aaacw4324J (Appellant) (Respondent) Assessment Year: 2011-12 Westerngeco International Ddit Ltd. Vs International Taxation 14Th Floor, Tower C Dehradun Building No.10, Dlf Cyber City, Phase-Ii, Gurgaon-122002 Pan No.Aaacw4324J (Appellant) (Respondent)

Section 255(4)Section 44BSection 44DSection 9

…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 presumptive income of the assessee under Section 44BB of the Act. Respectfully following the decision of H…

Westerngeco International Ltd., Gurgaon vs. DDIT, Dehradun

ITA 6436/DEL/2014[2011-12]Status: DisposedITAT Delhi31 May 2023AY 2011-12

Bench: Sh. N. K. Billaiya & Sh. Anubhav Sharmaassessment Year: 2011-12 Dcit Western Geco International Circle Ii Vs Ltd. International Taxation C/O Srbc & Association Llp 4Th & 5Th Floor, Plot No.2B, Dehradun Noida 201304 Pan No.Aaacw4324J (Appellant) (Respondent) Assessment Year: 2011-12 Westerngeco International Ddit Ltd. Vs International Taxation 14Th Floor, Tower C Dehradun Building No.10, Dlf Cyber City, Phase-Ii, Gurgaon-122002 Pan No.Aaacw4324J (Appellant) (Respondent)

Section 255(4)Section 44BSection 44DSection 9

…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 presumptive income of the assessee under Section 44BB of the Act. Respectfully following the decision of H…

Sagarkumar Ishwarbhai Bhavani, Mumbai vs. ITO, Ward-32(3)(3), Mumbai

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 75/MUM/2023[2016-17]Status: DisposedITAT Mumbai30 May 2023AY 2016-17

Bench: Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.75/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2016-17) Sagarkumar Ishwarbhai बिधम/ Ito, Ward-32(3)(3) Bhavani Room No. 105, C-Wing, Vs. 1St Floor, Kautilya D-103 D-103, Amozan Park Ii Devki Nagar Link Road, Bhavan, Bkc, Bandra Borivali-West-400103. (E), Mumbai-400051. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Agupb5616P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Rakesh Joshi (Amicus Curiae) Revenue By: Shri Anil Gupta सुनवाई की तारीख / Date Of Hearing: 02/03/2023 घोषणा की तारीख /Date Of Pronouncement: 30/05/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Cit(A)/Nfac, Delhi Dated 16.12.2022 For Ay. 2016-17. 2. Grounds Raised By Assessee Are As Under: - “1. In The Facts & Circumstances Of The Case & In Law, The Ld. Ao Erred In Wrongly Holding That Service Tax Is Liable To Be Included In The Turnover For The Purpose Of Tax Audit Which Is Against The Definition Of Turnover As Per Institute Of Chartered Accountants Of India Guidelines. Without Prejudice To The Above 2. In The Facts & Circumstances Of The Case & In Law, The Ld. Ao Erred In Adding An Amount Of Rs.8,31,631/- By Adopting Arbitrary Rate Of Net Profit @ 15% While Computing Income As Per Normal Provisions Of The Act & Wrongly Holding That The Appellant Is Outside The Purview Of Section 44Ad & The Cit(A) Erred In Partly Confirming The Same.

For Appellant: Shri Rakesh Joshi (Amicus Curiae)For Respondent: Shri Anil Gupta
Section 234ASection 274Section 28Section 30Section 44A

…also brought to my notice the decision of the Hon’ble High Court of Delhi though in the context of presumptive taxation under Section 44BB of the Act (Director of Income Tax-1 Vs. Mitchell Drilling International (P.) Ltd.) (2015) 234 Taxman 818 (Delhi) (2016) 380 ITR 130 wherein the Hon’ble High Court upheld the action of the Ld. CIT(A)/Tribunal holding that for the purpose of computing presumptive income of the assessee u/s 44BB of the Act, the Service Tax collected by the assessee on the amount paid for rendering services is not to be included in the gross receipt. 9. In the light of the aforesaid discussion,…

Deputy Commissioner of Income Tax (It)-3(1)(2), Mumbai vs. M/S Korea Marine Transport Co. Ltd, Mumbai

In the result, the appeals filed by the revenue are dismissed

ITA 2861/MUM/2022[2016-2017]Status: DisposedITAT Mumbai17 Mar 2023AY 2016-2017
For Appellant: Shri Sandesh DesaiFor Respondent: Shri Soumendu Kumar Dash (Sr
Section 143(2)Section 143(3)Section 144C(1)Section 44B

…ts A.Y. 2016-17 & 2017-18 M/s. Korea Marine Transport Co. Ltd. deemed profit under Sec.44BB. We further find that a similar view had also been arrived at by the Hon‟ble High Court of Delhi in the case of DIT Vs. Mitchell Drilling International Pty. Ltd (2016) 380 ITR 130 (Del). The High Court in the aforementioned case finding itself to be in agreement with the view taken by the High Court of Uttarakhand in the case of Schlumberger Asia Services Ltd(supra), observed that for the purposes of computing the presumptive income of the assessee for the purposes of Section 44BB of the Act, the service tax collected by t…