Sundowner Offshore International (Bermuda) Ltd., Noida V. DCIT (International Taxation), Dehradun

ITA 4112/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7049 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 25-07-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: VISHAL MISRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G : NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO.4112/DEL/2016 ASSESSMENT YEAR: 2013-14 SUNDOWNER OFFSHORE INTERNATIONAL (BERMUDA) LTD., C/O NANGIA & COMPANY, A-109, SECTOR-136, NOIDA. PAN: AAHCS0550M VS DCIT (INTERNATIONAL TAXATION), CIRCLE-2, INCOME TAX OFFICE, SUBHASH ROAD, DEHRADUN. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI VISHAL MISRA & SHRI AMIT ARORA, CA REVENUE BY : SHRI N.K. BANSAL, SR. DR DATE OF HEARING : 30.04.2019 DATE OF PRONOUNCEMENT : 30.04.2019 ORDER PER R.K. PANDA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 31 ST MAY, 2016 OF THE CIT(A)-2, NOIDA, RELATING TO ASSESSMENT YEAR 2013-14. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS UNDER:- BASED ON THE FACTS AND CIRCUMSTANCES OF THE CASE, YOUR APPELLANT RESPECTFULLY SUBMITS THE FOLLOWING GROUNDS WHICH ARE WITHOUT PRE JUDICE TO EACH OTHER: ITA NO.4112/DEL/2016 2 GROUND NO. 1 THAT THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN AFFIRMING THE ACTION OF THE A.O. IN HOLDING THAT THE AMOUNT AGGREGATING TO INR. 30,340,965/- BEING THE PROPORTIONATE AMOUNT RECEIVED BY THE APPELLANT FOR MOBILIZATION OF THE RIG OUTSIDE INDIAN TERRITORIAL WATERS IS TO BE INCLUDED IN THE GROSS RECEIPTS U/S 44BB OF THE INCOME TAX ACT, 1961 AS OPPOSED TO THE CLAIM OF THE APPELLANT THAT THE SAME DOES NOT CONSTITUTE INCOME CHARGEABLE TO TAX IN IND IA AS PER SECTION 5 READ WITH SECTION 9 OF THE INCOME-TAX ACT, 1961. GROUND NO. 2 THAT THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN AFFIRMING THE ACTION OF THE A.O IN HOLDING THAT THE RECEIPTS ON ACCOUNT OF REIM BURSEMENTS OF EXPENSES AMOUNTING TO INR 2,481,281/- WERE INCLUDIBLE IN THE GROSS RECEIPTS FOR THE PURPOSE OF DETERMINATION OF INCOME UNDER SECTION 44 BB OF THE INCOME TAX ACT, 1961 AS OPPOSED TO THE CLAIM OF THE APPELLANT THAT THE SAME CANNOT GIVE RISE TO INCOME FOR TAXATION PURPOSES YOUR APPELLANT PRAYS THAT THE ERRONEOUS ORDER BE CA NCELLED AND APPROPRIATE RELIEF MAY BE GRANTED TO THE APPELLANT. YOUR APPELLANT CRAVES LEAVE TO ADD TO, ALTER, AMEND , VARY, OMIT, SUBSTITUTE OR DELETE ANY OF THE AFOREMENTIONED GROUNDS OF APPEAL OR ADD A NEW GROUND OR GROUNDS OF APPEAL AT ANY TIME THE TIME OF HEARING O F THE APPEAL. 3. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET, REFERRING TO THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2012-13 VIDE ITA NO.972/DEL/2016, ORDER DATED 27.11.2017, SUBMITTED THAT BOTH THE GROUNDS HAVE BEEN DECIDED AGAINST THE ASSESSEE BY THE TRIBUNAL. 4. WE HAVE HEARD THE RIVAL ARGUMENTS MADE BY BOTH T HE SIDES AND OBSERVE THAT THE TRIBUNAL IN ASSESSEES OWN CASE IN THE IMMEDIATELY PRECEDING ASSESSMENT YEAR HAS DECIDED BOTH THE ISSUES BY OBSERVING AS UNDER:- 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTI ONS AND ALSO PERUSED THE ORDERS OF THE LOWER AUTHORITIES. THE ABOVE TWO ISSU ES IN THE APPEAL OF THE ASSESSEE ARE SQUARELY COVERED AGAINST THE ASSESSEE BY THE DE CISION OF THE HON'BLE SUPREME ITA NO.4112/DEL/2016 3 COURT IN CASE OF SEDCO FOREX INTERNATIONAL INCORPOR ATION (SUPRA) WHEREIN IT HAS BEEN HELD THAT: A. THAT MOBILIZATION CHARGES ARE TO BE INCLUDED IN GR OSS RECEIPTS FOR THE PURPOSE OF PROVISIONS OF SECTION 44BB OF THE INCOME TAX ACT, 1961 B. THE REIMBURSEMENT CHARGES ARE TO BE INCLUDED IN GR OSS RECEIPTS FOR THE PURPOSE OF PROVISIONS OF SECTION 44BB OF THE INCOME TAX ACT, 1961 6. THEREFORE, THE APPEAL OF THE ASSESSEE WITH RESPECT TO BOTH THESE ABOVE ISSUES ARE COVERED AGAINST THE ASSESSEE. HENCE, GRO UND NO. I AND 2 OF THE APPEAL ARE DISMISSED. 5. IN VIEW OF THE DECISION OF THE TRIBUNAL IN ASSES SEES OWN CASE FOR THE IMMEDIATELY PRECEDING ASSESSMENT YEAR , BOTH THE GR OUNDS RAISED BY THE ASSESSEE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS DISMISSED. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 3 0.04.2019. SD/- SD/- (SUCHITRA KAMBLE) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 TH APRIL, 2019 DK COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASSTT. REGISTRAR, ITAT, NEW DELHI