Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 1513 - ITAT DELHIApplicability of section 44BB - services rendered by the assessee to ENI India Ltd. - Income by way of FTS u/s 9(1)(vii) - whether section 44BB is not applicable to second level contractors? - HELD THAT:- Provision of section 44BB are held to be applicable to the tax payer being a second leg contractor/sub-contractor. Including the decision in the case of DIT Vs. OHM Ltd. [2012 (12) TMI 422 - DELHI HIGH COURT] that the services rendered in relation to extraction and production of mineral oil are taxable u/s 44BB. A perusal of the service contract mentioned elsewhere clearly shows that the appellant had rendered similar services to ENI India Ltd for which services it received the revenue which it offered u/s 44BB of the Act. Considering the facts of the case in totality, in the light of judicial decisions discussed hereinabove, we are of the opinion that the assessee’s case comes within the purview of section 44BB and its income should be taxed accordingly. First substantive grievance is accordingly allowed. We hold that the assessee’s case comes within the purview of section 44BB of the Act. Levy of interest u/s 234B - HELD THAT:- The insertion of the proviso cannot be considered to have retrospective effect so as to expose a non-resident company to levy of interest u/s 234B of the Act for the assessment years prior to assessment year 2013-14. In the light of the above, we direct the Assessing Officer to not charge interest u/s 234B. See Technip UK [2018 (12) TMI 1069 - ITAT DELHI]
|