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The Tax Publishers ADIT v. R & B Falcon (A) Pty. Ltd. [ITA No. 1048/Del/2014, dt. 29-4-2016] : 2016 TaxPub(DT) 2190 (Del-Trib) Service tax whether part of section 44BB scope *Facts:* Assessee non-resident was in the business of oil exploration offered their income to tax under section 44BB in which service tax collected was excluded from the gross receipts. Assessing officer/Commissioner (Appeals) took a stand that the scope of section 44BB(2)(b) in connection with will also include the service tax component as well. Thus assessee went in appeal: Held in favour of the assessee that the phrase in connection with restricts the scope of section 44BB to proceeds only arising from mineral oil exploration and prospecting. Service tax being a statutory levy is not to form part of the sums taxable under section 44BB. DIT v. Mitchell Drilling International Pvty. Limited in I.T.A. No. 403/2013 wherein the Hon'ble Delhi High Court in its decision dated 28-9-2015 affirmed.

The Tax Publishers

ADIT v. R & B Falcon (A) Pty. Ltd. [ITA No. 1048/Del/2014, dt. 29-4-2016] : 2016 TaxPub(DT) 2190 (Del-Trib)

Service tax whether part of section 44BB scope

Facts:

Assessee non-resident was in the business of oil exploration offered their income to tax under section 44BB in which service tax collected was excluded from the gross receipts. Assessing officer/Commissioner (Appeals) took a stand that the scope of section 44BB(2)(b) in connection with will also include the service tax component as well. Thus assessee went in appeal:

Held in favour of the assessee that the phrase in connection with restricts the scope of section 44BB to proceeds only arising from mineral oil exploration and prospecting. Service tax being a statutory levy is not to form part of the sums taxable under section 44BB.

DIT v. Mitchell Drilling International Pvty. Limited in I.T.A. No. 403/2013 wherein the Hon'ble Delhi High Court in its decision dated 28-9-2015 affirmed.