Gross receipts will not include service tax while calculating presumptive income u/s 44BB

Brief of the Case Delhi High Court held In the case of Director of Income Tax & Principal CIT vs. Mitchell Drilling International Pvt. Ltd. that the service tax is not an amount paid or payable, or received or deemed to be received by the Assessee for the services rendered by it. The Assessee is only collecting the service tax for passing it on to the government. Accordingly holds that for the purposes of computing the ‘presumptive income’ of the assessee for the purposes of Section 44 BB, the service tax collected by the Assessee is not to be included in the gross receipts. Facts of ...