Dismissing the appeal of the revenue the Court held that the amount reimbursed to the assessee (service provider) by ONGC (service recipient), representing service tax paid earlier by the assessee to the Government of India, would not form part of the aggregate amount referred to in clauses (a) and (b) of sub-section(2) of Section 44BB of the Act.Accordingly provision for services and facilities provided in prospecting or for extraction or production of mineral oils is not to be included in gross receipts for purpose of presumptive tax . (DIT v. Mitchell Drilling International Pvt Ltd ( 2016) 380 ITR 130 (Delhi) (HC) CBDT Circular No. 4/2008 dt 28.04.2008 ( 2008) 300 ITR 92 (St) & Circular No. 1/2014 dt 13.01.2014 ( 2014) 360 ITR 53 (St) is followed). Accordingly the appeals are to be listed before the Division Bench, hearing appeals under Section 260-A of the Act, for its disposal in terms of this order.( ITA No. 40 of 2012. Dt. 12.04.2019) (AY. 2004 05)
DIT (IT) v. Schlumberger Asia Services Ltd ( 2019)414 ITR 1// 264 Taxman 108/ 177 DTR 126/308 CTR 314 (FB))(Uttarkhand)(HC), www.itatonline.org.Smith International Inc. v .Add.DIT (IT) ( 2019) 414 ITR 1/ 264 Taxman 108/ 177 DTR 126 / 308 CTR 314 (FB))(Uttarkhand)(HC), www.itatonline.org
S. 44BB : Mineral oils – Presumptive tax-Gross receipts on account of- Reimbursement of custom duty, service tax paid earlier would not form part of the aggregate amount and not includible in gross receipts . [ S.2(24) , 5, 9 ,43B]