M/s. Sundowner Offshore International (Bermuda) Ltd., New Delhi V. ADIT, Dehradun

ITA 3453/DEL/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6485 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 29-11-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 06-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

1 N THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER ITA NO. 3453/DEL/2014 A.Y. : 2010-11 M/S SUNDOWNER OFFSHORE (BERMUDA) VS. ASSTT. DIREC TOR OF INCOME TAX, INTERNATIONAL (BERMUDA) LIMITED, INTERNATIONAL T AXATION, C/O NANGIA & COMPANY, INCOME TAX OFFICE, SUITE 4A, PLAZA M-6, JASOLA, SUBHASH ROAD, NEW DELHI 110 025 DEHRADUN 248001 UTTARAKHAND (PAN: AAHCS0550M) (ASSESSEE ) (RESPONDENT) ASSESSEE BY : SH. AMIT ARORA, CA DEPARTMENT BY : SH. S.K. JAIN, SR. DR PER H.S. SIDHU, JM: O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-II, DEHRADUN DATE D 23.4.2014 PERTAINING TO ASSESSMENT YEAR 2010-11. 2. THE GROUNDS OF APPEAL READ AS UNDER:- BASED ON THE FACTS AND CIRCUMSTANCES OF THE CASE, YOUR APPELLANT RESPECTFULLY SUBMITS THE FOLLOWING GROUND : GROUND NO. 1 THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW BY AFF IRMING TO THE ACTION OF THE AO AND HOLDING THAT THE AMOUNTS AGGRE GATING TO 2 RS. 66,978,460/-, RECEIVED BY THE APPELLANT FROM TH E CUSTOMERS AS REIMBURSEMENT OF MOBILIZATION / DEMOBI LIZATION EXPENSES INCURRED BY THE APPELLANT, IS TO BE INCLUD ED IN THE GROSS RECEIPTS U/S 44 BB OF THE INCOME TAX ACT, 1961. YOUR APPELLANT PRAYS THAT THE ERRONEOUS ORDER BE C ANCELLED AND APPROPRIATE RELIEF MAY BE GRANTED TO THE APPELLANT. YOUR APPELLANT CRAVES LEAVE TO ADD TO, ALTER, AMEND , VARY, OMIT, SUBSTITUTE OR DELETE THE AFOREMENTIONED GROUN D OF APPEAL OR ADD A NEW GROUND OR GROUNDS OF APPEAL AT ANY TIM E BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. THE ISSUE IN DISPUTE HAS BEEN DECIDED BY THE LD . CIT(A) AGAINST THE ASSESSEE BY AFFIRMING THE ACTION OF THE AO IN FOLLOWING THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. HALLIBURTON OFFSHORE SE RVICES INC. REPORTED IN 300 ITR 265, WHEREIN IT HAS BEEN HELD THAT THE REIMBURSEMEN T OF THE EXPENDITURE IS INCLUDIBLE IN THE REVENUE AS CONTEMPLATED BY SECTIO N 44BB OF THE I.T. ACT, 1961 (ACT). 4. AT THE OUTSET, LD. COUNSEL OF THE ASSESSEE STATE D THAT THE SIMILAR ISSUE IN DISPUTE HAS BEEN DECIDED AGAINST THE ASSESSEE BY T HE ITAT, G BENCH, NEW DELHI IN ITA NO. 2914/DEL/2010 (AY 2006-07) BY AFFIRMING THE ACTION OF THE LD CIT(A) WHEREIN THE LD. CIT(A) HAS FOLLOWED THE JURISDICTION AL HIGH COURT DECISION IN THE CASE OF CIT VS. HALLIBURTON OFFSHORE SERVICES INC. REPORTED IN 300 ITR 265, AS AFORESAID. HE FURTHER STATED THAT THE AFORESAID DEC ISION OF HONBLE HIGH COURT WAS FURTHER CHALLENGED IN THE HONBLE SUPREME COURT AND , THEREFORE, ISSUE IS UNDER LITIGATION. IN THIS BEHALF, HE FILED THE COPY OF THE ITAT ORDER, HONBLE HIGH COURT ORDER AND THE HONBLE SUPREME COURT ORDER DATED 7.7 .2011. 3 5. ON THE OTHER HAND, LD. DR INTER-ALIA RELIED UPO N THE AFOREMENTIONED DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT. 6. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORDS. WE FIND THAT THE SIMILAR ISSUE IN DISPUTE HAS BEEN DECIDED AGAINST T HE ASSESSEE BY THE ITAT, G BENCH, NEW DELHI IN ITA NO. 2914/DEL/2010 (AY 2006-07 ). WE FURTHER FIND THAT IN THE PRESENT CASE, LD. CIT(A) HAS DECIDED THIS ISSUE I N FAVOUR OF THE DEPARTMENT BY FOLLOWING THE DECISION OF THE HONBLE JURISDICTIONA L HIGH COURT, WHICH IS BINDING OF ALL THE AUTHORITIES WORKING UNDER THE JURISDICTIONA L OF HONBLE HIGH COURT, THEREFORE, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A), HENCE WE UPHOLD THE SAME AND DISMISS THE APPEAL OF THE ASSESSEE ON THE ISSUE IN DISPUTE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE S TANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/12/20 16. SD/- SD/- [O.P. KANT] [H.S. SIDHU] ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 16/12/2016 SRBHATNAGAR COPY FORWARDED TO: - 1. ASSESSEE 2. RESPONDENT 3. CIT 4.CIT (A) 5. D R, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES 4