Wavefield Inseis ASA, New Delhi V. DCIT (International Taxation), Dehradun

ITA 971/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3319 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 25-02-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: G K DHALL
• Section: 143(3); 5(2)

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B : NEW DELHI BEFORE SHRI KULDIP SINGH , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 971/DEL/2016 (ASSESSMENT YEAR: 2011 - 12 ) WAVEFIELD INSEIS ASA, C/O. NANGIA & COMPANY, SUITE 4A, PLAZA M - 6, JASOLA, NEW DELHI PAN:AAACW8208M VS. DCIT (INTERNATIONAL TAXATION), CIRCLE - 2, SUBHASH ROAD, DEHRADUN (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AMIT ARORA, CA REVENUE BY: SHRI GK DHALL, CIT DR DATE OF HEARING 27/11 /2017 DATE OF PRONOUNCEMENT 2 7 / 11 /2017 O R D E R PER PRASHANT MAHARISHI , A. M. 1. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD ASSESSING OFFICER DATED 28.12.2015 PASSED U/S 143(3) READ WITH SECTION 144C(13) OF THE INCOME TAX ACT, 1961 FOR ASSESSMENT YEAR 2011 - 12 RAISING FOLLOWING GROUNDS OF APPEAL: - 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD AO/DRP HAS ERRED ON FACTS AND IN LAW IN HOLDING THAT THE SUM OF RS. 24296868/ - AND RS. 21381753/ - RECEIVED BY THE APPELLANT TOWARDS FEE FOR MOBILIZATION AND DEMOBILIZATION OF THE RIG RESPECTIVELY OUTSIDE INDIA, IS TO BE IN CLUDED IN THE GROSS RECEIPTS U/S 44BB OF THE ACT WITHOUT APPRECIATING THAT T HE SAID AMOUNT DOES NOT ACCRUE OR ARISE TO THE APPELLANT IN INDIA IN TERMS OF SECTION 5(2) READ WITH SECTION 9 OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD AO /DRP HAS ERRED ON FACTS AND IN LAW IN HOLDING THAT SUM OF RS. 12901399/ - RECEIVED BY THE APPELLANT FROM ONGC AS REIMBURSEMENT OF ACTUAL EXPENSES INCURRED BY THE APPELLANT ON THEIR BEHALF, IS TO BE INCLUDED IN THE GROSS RECEIPTS U/S 44BB OF THE INCOME TAX A CT , 1961. 2. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSEE HAS GIVEN EQUIPMENT ON HIRE TO ONGC FOR SEISMIC VESSEL FOR 3D DATA EQUATION. IT FILED ITS RETURN OF INCOME ON 30.11.2011 FOR RS. 182675970/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE LD AS SESSING OFFICER THOUGH ACCEPTED THE METHOD OF TAXATION U/S 44BB OF THE ACT, HOWEVER, WITH RESPECT TO THE MOBILIZATION AND DEMOBILIZATION SUM OF RS. 24296868/ - AND RS. 21381753/ - AS WELL AS WAVEFIELD INSEIS ASA, VS. VDCIT (INTERNATIONAL TAXATION), ITA NO. 971/DEL/2016 (ASSESSMENT YEAR: 2011 - 12) PAGE | 2 REIMBURSEMENT OF RS. 12901399/ - WERE CONSIDERED IN THE GROSS RECEIPT U/S 44BB OF THE ACT. THEREFORE, ASSESSEE HAS RAISED GROUND NO. 1 ON THIS ISSUE. 3. THE SECOND ISSUE IN THIS APPEAL IS CONSIDERING SUM OF RS. 12901399/ - AS REIMBURSEMENT OF ACTUAL EXPENDITURE INCLUDED BY AO IN GROSS RECEIP TS U/S 44BB OF THE ACT. 4. THE LD AR SUBMITTED THAT NOW THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF THE HON'BLE SUPREME COURT IN CASE OF SEDCO FOREX INTERNATIONAL INCORPORATION VS. CIT 87 TAXMANN.COM 29 AGAINST THE ASSESSEE . THE LD CIT DR ALSO RELIED UPON THE SAME. 5. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND ALSO PERUSED THE ORDERS OF THE LOWER AUTHORITIES. THE ABOVE TWO ISSUES IN THE APPEAL OF THE ASSESSEE ARE SQUARELY COVERED AGAINST THE ASSESSEE BY THE DECISION OF THE HON'BLE SUPREME COU RT IN CASE OF SEDCO FOREX INTERNATIONAL INCORPORATION (SUPRA) WHEREIN IT HAS BEEN HELD THAT : A. THAT MOBILIZATION / DEMOBILIZATION CHARGES ARE TO BE INCLUDED IN GROSS RECEIPTS FOR THE PURPOSE OF PROVISIONS OF SECTION 44BB OF THE INCOME TAX ACT, 1961 B. THE REIMB URSEMENT CHARGES ARE TO BE INCLUDED IN GROSS 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, GROUND NO. 1 AND 2 OF THE APPEAL ARE DISMISSED. 7. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 / 11 /2017. - S D / - - S D / - ( KULDIP SINGH ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 7 / 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