DCIT, CIRCLE- 2(2)(2), INTL. TAXATION, NEW DELHI V. NATIONAL PETROLEUM CONSTRUCTION COMPANY, NOIDA

ITA 5563/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1708 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2011-2012
• Appeal Filed On: 31-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DR PRABHA KANT
• Section: 13; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.5563/DEL/2017 ASSESSMENT YEAR: 2011-12 DCIT CIRCLE 2 (2) (2), INTERNATIONAL TAXATION, NEW DELHI VS NATIONAL PETROLEUM CONSTRUCTION COMPANY C/O NANGIA & CO. LLA, A-109, SECTOR -136, NOIDA (APPELLANT) (RESPONDENT) APPELLANT BY SH. AMIT ARORA, CA RESPONDENT BY DR. PRABHA KANT, CIT DATE OF HEARING: 01/07/2021 DATE OF PRONOUNCEMENT: 01/07/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL FILED BY THE REVENUE IS PREFERRED AGAI NST THE ORDER OF THE CIT(A)-43, NEW DELHI DATED 06.06.2017 FOR A.Y. 2011-12. 2. THE GRIEVANCE OF THE REVENUE READ AS UNDER :- 2 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE IS A COMPANY INCORPORATED AND EXISTING UNDER THE LAWS OF UAE AND ALSO A TAX RESIDENT THERE. THE PRINCIPAL ACTIVITIE S OF ASSESSEE INCLUDE FABRICATION AND INSTALLATION OF ONSHORE AND OFFSHORE PLATFORMS AND SUBMARINE PIPELINES AND PIPELINES COA TING. THE ASSESSEE HAS ALSO ENTERED INTO CONTRACTS WITH ONGC FOR THE AFORESAID PURPOSES. AS PER THE TERMS OF THE CONTRA CT, NPCC HAS 3 CARRIED OUT SEQUENTIAL ACTIVITIES SUCH AS DESIGN AN D ENGINEERING, MATERIAL PROCUREMENT, FABRICATION AND INSTALLATION. 4. WHILE FRAMING THE ASSESSMENT ORDER U/S. 143 (3) / 144 C OF THE ACT THE AO OBSERVED AS UNDER :- 5. IT CAN BE SEEN FROM THE ABOVE THAT THE AO HAS FO LLOWED THE FINDINGS GIVEN IN A.Y.2007-08 AND 2008-09 AND COMPL ETED THE ASSESSMENT BY MAKING ADJUSTMENT OF RS. 32.52 CRORES . 6. THE ASSESSEE ASSAILED THE ASSESSMENT BEFORE THE CIT(A) AND THE CIT(A) FOUND THAT THE ISSUE IS COVERED IN FAVOU R OF THE ASSESSEE BY THE ORDER OF THE HONBLE HIGH COURT OF DELHI FOR A.Y.2007-08 AND 2008-09. THE FOLLOWING SUBSTANTIAL QUESTION OF 4 LAW WERE FRAMED AND ANSWERED BY THE HONBLE HIGH CO URT OF DELHI :- 1) WHETHER THE INCOME TAX APPELLATE TRIBUNAL HAS NO T ATTRIBUTED AND DETERMINED THE TAXABLE INCOME UNDER INSTALLATION AND COMMISSIONING; WHETHER THE SAID IS SUE/ QUESTION HAS REMAINED UNDECIDED AND THE EFFECT THER EOF. 2) WHETHER THE ORDER OF THE I NCOME TAX APPELLATE TRIBUNAL VIOLATES AND IS CONTRARY TO ARTICLE 7 (6) OF THE DOUBLE TAXATION AVOIDANCE AGREEMENT BETWEEN INDIA A ND UAE. 7. AND THE HONBLE HIGH COURT ADJUDICATED THE QUARR EL AS UNDER :- REASONING AND CONCLUSION 5 6 7 8 9 10 11 12 13 14 15 16 17 8. AS NO DISTINGUISHING DECISION HAS BEEN BROUGHT T O OUR NOTICE, RESPECTFULLY FOLLOWING THE BINDING DECISION OF THE HONBLE HIGH COURT OF DELHI (SUPRA) WE DECLINE TO INTERFERE . 9. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 10. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF BOTH THE REPRESENTATIVES ON 01.07.2021. SD/- SD/- (SUDHANSHU SRIVASTAVA) (N. K. B ILLAIYA) JUDICIAL MEMBER A CCOUNTANT MEMBER *NEHA* DATE:-01.07.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI 18 DATE OF DICTATION 01.07.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 01.07.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 01.07.2021 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 01.07.2021 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 01.07.2021 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 01.07.2021 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 01.07.2021 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER