Is 'equipment lost in hole' included in the gross revenue for computation of profits u/s 44BB of the IT Act?

Last updated: 13 July 2021
Quick Summary
This case examines whether the amount received by a company for 'equipment lost in hole' should be included in its gross revenue when calculating profits under Section 44BB of the Income Tax Act. The revenue argued it was a reimbursement of expenses and should be included, while the assessee relied on previous rulings. The tribunal considered whether Section 44BB, as a self-contained code, distinguishes between revenue and capital receipts.

Court :
ITAT Delhi

Brief :
This appeal by the revenue is preferred against the order of the CIT(A)-2, Noida dated 31.10.2016 pertaining to A.Y. 2012-13. 

Citation :
ITA No.79/Del/2017

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