M/s. BJ Services Company Middle East Limited, New Delhi V. Addl.DIT, Dehradun

ITA 5947/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3360 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 03-11-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A : NEW DELHI BEFORE SHRI H.S.SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 5947/DEL/2014 (ASSESSMENT YEAR: 2011 - 12 ) BJ SERVICES COMPANY MIDDLE EAST LTD, C/O NANGIA & CO. SUITE 4A PLAZA, M - 6, JASOLA, NEW DELHI, PAN:AAACB8529N VS. ADDL. DIT, INTERNATIONAL TAXATION, DEHRADUN (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AMIT ARORA, CA REVENUE BY: SMT. APARNA KARAN, CIT DR DATE OF HEARING 20/11/2017 DATE OF PRONOUNCEMENT 2 1 / 11 /2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD CIT ( A) - II, NEW DELHI DATED 26.08.2014 FOR THE ASSESSMENT YEAR 2011 - 12. T HE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - THE LD CIT ( A) HAS ERRED ON FACTS AND IN LAW BY AFFIRMING TO THE ACTION OF THE AO AND HOLDING THAT THE AMOUNTS AGGREGATING TO RS. 62205120/ - RECEIVED BY THE APPELLANT FROM ITS CUSTOMERS AS REIMBURSEMENT OF EXPENSES INCURRED ON BEHALF OF SUCH CUSTOMERS, IS TO BE INCLUDED IN GROSS RECEIPTS FOR DETERMINATION OF PROFITS U/S 44BB OF THE INCOME TAX ACT, 1961 (THE ACT). 2. THE SOLITARY ISSUE IN THIS APPEAL IS WH ETHER RS. 62205120/ - RECEIVED BY THE APPELLANT FROM ITS CUSTOMERS AS REIMBURSEMENT OF EXPENSES IS TO BE INCLUDED IN GROSS RECEIPT FOR DETERMINATION OF PROFITS U/S 44BB OF THE INCOME TAX ACT, 1961. PAGE | 2 3. THE LD AO IN ITS ORDER DATED 15.05.2014 HAS INCLUDED THE ABOVE S UM. THE LD CIT ( A) HAS ALSO CONFIRMED THE ABOVE ACTION OF THE LD AO. BOTH THE LOWER AUTHORITIES WERE OF THE VIEW THAT REIMBURSEMENT FORM S PART OF THE GROSS RECEIPT FOR COMPUTING INCOME U/S 44BB OF THE ACT. 4. THE LD AR FAIRLY CONCEDED THAT THIS ISSUE IS COVE RED NOW AGAINST THE ASSESSEE BY E DECISION OF THE HON'BLE SUPREME COURT IN CASE OF SEDCO FOREX INTERNATIONAL INCORPORATION VS . CIT 87 TAXMANN.COM 29. THE LD DR ALSO SUBMITTED THAT THE ISSUE IS NOW COVERED AGAINST THE ASSESSEE. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. THE HON'BLE SUPREME COURT IN THAT ABOVE DECISION OF SEDCO FOREX INTERNATIONAL LTD ( SUPRA) HAS HELD THAT REIMBURSEMENT OF EXPENSES IS REQUIRED TO BE INCLUDED FOR THE PURPOSE OF COMPUTATION OF DEEMED PROFIT CHARGEABLE TO TAX U/S 44B B OF THE ACT. IN THE RESULT WE FIND NO INFIRMITY IN THE ORDER OF THE LOWER AUTHORITIES. HENCE, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 1 / 11 /2017. - S D / - - S D / - ( H.S.SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 1 / 11 /2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI