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TMI Blog2014 (2) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in law in affirming the action of the A.O. in holding that the amounts aggregating to Rs.249,969,275/- received by the appellant from its customers as reimbursement of actual expenses incurred by the appellant on their behalf, is to be included in the gross receipts u/s 44BB of the Income Tax Act, 1961 (the Act)." 3. At the outset of the argument, ld. DR submitted a copy of the judgment of ITAT 'F' Bench in assessee's own case for AY 2008-09 wherein the issue involved in the aforementioned sole ground of the assessee has been decided in favour of the Revenue and against the assessee with following observations:- "2. Adverting first to ground nos.1 and 2 in the appeal, facts, in brief, as per relevant orders are that e-return declaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed these amounts as part of the taxable gross receipts towards fee for technical services. Accordingly, the AO while relying decision of Uttarakhand. High Court in the case of CIT Vs. Halliburton Offshore Services Inc.,300 ITR 265 and referring to various other decisions; Commissioner of Income Tax vs. Atwood Oceanics Pacific Ltd.,2010-TII- 12-HC-Uttarakhand,CIT Vs. R & B Falcon Drilling Co. (Uttrakhand High Court) (2009) TII-20-HC-Ukhand- INTL dated April 24, 2009; CIT Vs. M/s Sundowner Offshore International Burmuda Ltd.(Uttrakhand High Court) 2009-TII-07-Ukhand-INTL) dated February 16, 2009; CIT Vs. M/s B.J. Service Co. (Uttrakhand High Court) (2007-TII-05-HC-Ukhand- Intl) dated October 8, 2007; CIT Vs. Trans Ocean Offshore Incorporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our of the department by the Jurisdictional High Court in thecase of Halliburton Offshore Service Inc (300 ITR 265) wherein it has been held that reimbursement of expenditure is includible in the taxable income u/s 44BB. It has been stated by the assessee that subsequent to the above decision the Uttarkhand High Court has decided the matter in favour of the assessee in the case of Schlumberger Asia Services Ltd. (317 ITR 156). However as the appeals of the assessee and department are pending in above cases before the Supreme Court the variation proposed by the Assessing Officer on this issue is confirmed. However, as it has been held above that the income of the assessee is to be taxed u/s 44BB and not under the head fees for technical serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India. Clause (b) of sub-s. (2) refers to the amounts, (A) received by assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India, and (B) deemed to be received by the assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of mineral oils outside India. 6. Thus, it is clear from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng an identical issue in relation to reimbursements towards helicopter recharge, followed the decision of Hon'ble Uttarakhand High Court in Sedco Forex International Inc. vs. CIT,299 ITR 238 and dismissed the CO filed by the assessee while upholding the findings of the ld. CIT(A) that the reimbursements towards helicopter recharge is exigible to tax in terms of provisions of sec. 44B of the Act. 5.2 In the light of view taken by the Hon'ble jurisdictional High Court in their aforesaid decisions, especially when the ld. AR accepted the position that the issue is squarely covered by the aforesaid decision while no other contrary decision was brought to our notice nor the ld. AR placed any material before us, controverting the aforesaid findi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arising in India or outside. Thus, for the purpose of presumptive determination of assessee's profits, quantum of amount received by it from its customers against its reimbursement of fuel and material recharge, which are intricately linked to the services were rendered by the assessee and incurred by it, has to be considered as a part of the receipt for the purposes of computation of income u/s 44B of the Act. 5. In the light of discussions made hereinabove and when the ld. AR accepted the position that the issue is squarely covered by the aforesaid decision while no other contrary decision was brought to our notice nor ld. AR placed any contrary material before us controverting the aforesaid findings of the Assessing Officer, we have no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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