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Income Tax Appellate Tribunal - Delhi

Dcit, Circle 2(1)(2), Internatioal ... vs J Ray Mcdermott S.A., New Orleans, ... on 21 December, 2023

       IN THE INCOME TAX APPELLATE TRIBUNAL
             DELHI BENCH 'D', NEW DELHI
            Before Sh. Saktijit Dey, Vice President
            Dr. B. R. R. Kumar, Accountant Member
        ITA No. 1762/Del/2023 : Asstt. Year: 2018-19
DCIT,                           Vs   J Ray Mcdermott S.A.,
Circle-2(1)(2),                      C/o M/s Nangia & Co., LLP,
International Taxation,              A-109, Sector-136, Noida, U.P.
New Delhi-110002                                     And
                                     C/o Nangia & Company, LLP,
                                     B-27, Soami Nagar, Delhi-110017
(APPELLANT)                          (RESPONDENT)
PAN No. AADCJ6385R

                  Assessee by : Sh. Amit Arora, CA &
                  Revenue by : Sh. Sanjay Kumar, Sr. DR
Date of Hearing: 11.10.2023          Date of Pronouncement: 21.12.2023


                                ORDER

Per Dr. B. R. R. Kumar, Accountant Member:

The present appeal has been filed by Revenue against the order of ld. CIT(A)-43, New Delhi dated 21.03.202 3.

2. Following grounds have been raised by the Revenue:

"1. Whether the facts and circumstances of the case, ld. C IT(A) erred in holding that receipts on account of Service Tax/G ST are not forming part of the gross receipts for the purpose of de termining presumptive income u/s 44BB of the Income Tax Act, 1961."

3. The as sessee is a non-resident foreign company incor porated under the laws of Republic of Panama. The assessee is engaged in the business of providing services and 2 ITA No. 1762/Del/2023 J Ray Mcdermott S.A. facilities for exploratio n and production o f oil and natural gas in India.

4. The issue of inclusion of VAT/Service Tax/G ST stands for the purpose of Section 44BB of the Income 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 delete d the addition base d on the judgments of the Hon'ble High Cour t 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. Mitche ll Drilling Interna tional Pvt. Ltd. (supra) is reproduced below:

"that for the purposes of computing the presumptive income of the assessee fo r the purposes o f Section 44BB, the se rvice tax collecte d by the asses see on the amount pai d to it for rendering services w as not to be include d in the gross rece ipts in terms of Section 44BB(2) read w ith Section 44B B(1) . The service tax is no t an amount paid or payable, or receiv ed or deemed to be rece ived by the assessee for the services rende red by it. The assessee only co llec ted the se rv ice tax for pas sing it on to the Government."

6. In the a bsence of any change in the factual matrix and legal proposition, we hereby de cline to interfere with the order of ld. CIT(A).

J Ray Mcdermott S.A.

7. In the re sult, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 21/12/202 3.

         Sd/-                                      Sd/-
(Saktijit Dey)                            (Dr. B. R. R. Kumar)
Vice President                            Accountant Member
Dated: 21/12/2023
*Subodh Kumar, Sr. PS*
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
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