9911796707
TMI Blog2015 (1) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case, the Ld. AO/DRP has erred in proposing that mobilization revenue of Rs. 70,348,648/-, proportionate to the voyage undertaken by the rig outside Indian territorial waters, is to be included in gross receipts for the purpose of determining income under subsection (1) of section 44BB of the Income Tax Act, 1961. 2. On the facts and circumstances of the case, the Ld. AO/DRP has erred in proposing that receipts against the reimbursement of expenses of Rs. 20,725,491/- are to be included in the gross receipts for the purpose of determining income under sub-section (1) of section 44AB of the I.T. Act, 1961. 3. On the facts and circumstances of the case, the Ld. AO/DRP has erred in proposing that receipts against the service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee at Rs. 16,89,06,810/- u/s. 143(3) read with section 144C(13) of the I.T. Act, 1961 vide his order dated 22.8.2013 6. Against the above order the assessee is in appeal before us. 7. We have heard both the sides and perused the material placed before us. With regard to ground no. 1 regarding mobilization revenue of Rs. 70,348,648/- is concerned, the Ld. DR during the hearing has filed a copy of the decision of the ITAT, Bench 'H', New Delhi passed in ITA No. 4906/Del/2012 (A.Y. 2009- 10) in the case of Westerngco International Ltd. vs. ADIT (Intt. Taxation), Dehradun vide order dated 24.1.2014 and submitted that the issue in the present case is squarely covered by the aforesaid decision. The Tribunal vide its aforesaid order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Sedco Forex International Inc. (supra). The ratio laid down by the Hon'ble Supreme Court in that case is not applicable here as it is not a case where separate parts of a contract are executed at different places. The argument that the payment was in the nature of reimbursement of expenses incurred by the assessee company and hence not income was also rejected by the Hon'ble High Court. Thus, we are unable to agree with the contentions of the Ld.Counsel for the assessee. Thus these grounds of the assessee are dismissed." 7.1 From the above, it is evident that the ITAT decided the above issue against the assessee by following the judgment of the Hon'ble Uttarakhand High Court decision in the case of Sedco Forex Internat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arakhand). The facts in the said case were that the assessee rendered services to the ONGC. For the assessment year 1991-92, it claimed that the amount of Rs. 6,16,989/- received on account of reimbursement of freight and transportation charges actually incurred in respect of equipment was not includible while computing its income under Section 44BB. The Assessing Officer rejected the claim but the CIT(A) and the Tribunal accepted it. On appeal, the Hon'ble High Court held as under:- "Held, allowing the appeal, that it was not in dispute that the amount had been received by the assessee. Therefore, the Assessing Officer added the said amount which was received by the nonresident company rendering services under the provisions of section 44 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of the same assessee vide which the Tribunal has decided the issue in favor of the assessee vide its order dated 02.8.2013. The relevant paras 3 to 4 are reproduced hereunder :- "3. We have heard both the sides and perused the material placed before us. We find that this issue is covered in favour of the assessee by the decision of ITAT in assessee's own case for AY 2008-09 dated 29th June, 2012 vide ITA No.5284/Del/2011, wherein the ITAT held as under:- "The service tax is a statutory liability like custom duty. Hon'ble Uttarakhand High Court in their decision in Schlumberger Asia Services Ltd. (supra) concluded that reimbursement of custom duty paid by the assessee could not form part of amount for the purpose of deemed profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to exclude service tax from the gross receipts for the purpose of determining the income under Section 44BB of the Income-tax Act, 1961. Accordingly, ground Nos.1 & 2 of the assessee's appeal are allowed." 9.1 From the above, it is evident that the ITAT decided the above issue in favor of the assessee by following the judgment of the Hon'ble Jurisdictional High Court in the case of Director of Income Tax (International Taxation) and Another vs. Schlumberger Asia Services Ltd. [2009] 317 ITR 156 (Uttarakhand). No contrary decision of the Hon'ble Jurisdictional High Court has been pointed by the Ld. DR. In view of the above, we respectfully following the above decision of the Hon'ble High Court of Uttarakhand and also the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
