Dismissing the appeal of the assesse the Tribunal held that The activity of hiring Ships by the user for transporting men/machines to locations where it was doing exploration/production of mineral oil is directly and closely related with ‘services’ rendered by plant and machinery and the income arising out of such activities has to be assessed u/s. section 44BB and not u/s. 44B of the Act. Amount of service tax being in nature of statutory payment could not be included in gross receipts for the purpose of computing presumptive income of asseessee u/s 44BB. (AY.2008-09, 2009-10, 2010-11)
Swiwar Offshore Pte. Ltd. v. Add. CIT(IT) (2018) 167 DTR 341/ 193 TTJ 951 (Mum.) (Trib.)
S. 44BB : Mineral oils–Computation-Non-residents-The activity of hiring Ships by the user for transporting men/machines to locations where it was doing exploration/production of mineral oil is directly and closely related with ‘services ‘rendered by plant and machinery and the income arising out of such activities has to be assessed u/s. section 44BB and not u/s. 44B of the Act- Amount of service tax being in nature of statutory payment could not be included in gross receipts for the purpose of computing presumptive income of assessee u/s. 44BB. [S. 44B]