G&T Resources (Europe) Ltd. v. DDIT (ITAT Delhi)- The receipts for supply of spare parts used in prospecting for, or extraction or production of mineral oils in the turnkey contract are eligible for presumptive taxation under section 44BB of the Income Tax Act, 1961. It may be noted on the facts of the present case, the supply of spare parts was indivisible part of the entire repair/ revamp contract.
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: C: NEW DELHI
ITA No.3909/Del/2010 Assessment Year: 2007-08
G&T Resources (Europe) Ltd Vs. DDIT
ORDER
PER I.P. BANSAL, JUDICIAL MEMBER
This is an appeal filed by the assessee under the provisions of Section 253 (1) (d) of the IT Act, 1961, against the order passed by the Assessing Officer u/s 143 (3) read with Section 144C of the Income-tax Act, 1961 (the Act). The grounds of appeal read as under:-
1. That, on the facts and in the circumstances of the case and in law, the learned Dy. Director has erred in applying an arbitrary rate of 25% profit on sale of spares/supplies.
2. As the sale of spares/supplies has taken place entirely outside the country in the United Kingdom, the same should not be taxed in India.
3. Without prejudice to Ground No.1, the learned Deputy Director has erred in both facts and law in estimating profit of 25% which is exceptionally high as only profits attributable to the transaction will be taxed in India.
4. The appellant craves leave to supplement, to cancel, to amend, to add/or otherwise to modify any or all the ground(s) of appeal stated hereinabove, at a later stage.
