DCIT (International Taxation), Dehradun V. M/s. Deepwater Pacific 1 Inc., Mumbai

ITA 3965/DEL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5433 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 06-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K DHALL
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER ITA NO.3965/DEL/2016 ASSESSMENT YEARS : 2012-13 DCIT (INTERNATIONAL TAXATION), CIRCLE-1, AAYAKAR BHAWAN, 13A, SUBHASH ROAD, DEHRADUN. VS. DEEPWATER PACIFIC 1 INC., LAKE BOULEVARD ROAD, HIRANANDANI BUSINESS PARK, POWAI, MUMBAI. PAN: AADCD1582A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AMIT ARORA, CA DEPARTMENT BY : SHRI D.K. DHALL, CIT, DR DATE OF HEARING : 25.04.2018 DATE OF PRONOUNCEMENT : 26.04.2018 ORDER PER R.S. SYAL, VP: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER PASSED BY THE CIT(A) ON 28.04.2016 IN RELATION TO THE ASSE SSMENT YEAR 2012-13 ITA NO.3965/DEL/2016 2 2. THE FIRST MAJOR ISSUE RAISED IN THIS APPEAL IS A GAINST NON-INCLUSION OF SERVICE TAX IN THE GROSS REVENUE FOR THE PURPOSES O F COMPUTATION OF PROFIT UNDER THE PRESUMPTIVE PROVISIONS OF SECTION 44BB OF THE ACT. 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE REL EVANT MATERIAL ON RECORD. THE ISSUE RAISED IN THIS GROUND IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COURT I N DIT VS. MITCHELL DRILLING INTERNATIONAL PVT. LTD. (2016) 380 ITR 130 (DEL) IN WHICH IT HAS BEEN HELD THAT COLLECTION OF SERVICE TAX DOES NOT F ORM PART OF GROSS RECEIPTS FOR THE PURPOSE OF COMPUTATION OF INCOME U/S 44BB O F THE ACT. SIMILAR VIEW HAS BEEN TAKEN BY THE DELHI TRIBUNAL IN DCIT (INTERNATIONAL TAXATION) VS. BAKER HUGHES, SINGAPORE PTE VIDE ITS ORDER DATED 23.03.2018 IN ITA NO.6259/DEL/2016. RESPECTFULLY FOLLOWING TH E PRECEDENT, WE UPHOLD THE IMPUGNED ORDER DIRECTING THE EXCLUSION O F THE AMOUNT OF SERVICE TAX FOR THE PURPOSE OF COMPUTATION OF INCOME U/S 44 BB OF THE ACT. 4. GROUND NO.5 AGAINST THE CHARGING OF INTEREST U/S 234B IS CONSEQUENTIAL AND DISPOSED OF ACCORDINGLY. ITA NO.3965/DEL/2016 3 5. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 26.04.20 18. SD/- SD/- [K. NARASIMHA CHARY] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 26 TH APRIL, 2018. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.