TMI Blog2012 (11) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... sion u/s 44BB, AO is justified in adding the amount received by assessee towards mobilization charges for the purpose of imposing income tax - grievance sought to be raised by the assessee is rejected - In the result, appeal filed by the assessee is dismissed. - IT APPEAL NO. 306 (DELHI) OF 2012 - - - Dated:- 21-9-2012 - G. D . Agrawal And A . D. Jain , JJ. Salil Kapoor, Sanat Kapoor and Vikas Jain for the Appellant. Bhim Singh for the Respondent. ORDER A. D. Jain, Judicial Member This is an appeal filed by the assessee for Assessment Year 2006-07 against the order dated 01.11.2011 passed by the CIT(A)-II, Dehradun. The grievance of the assessee in this case is that the Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced reliance on Sedco Forex International Inc. v. CIT [2008] 299 ITR 238 (Uttarakhand). 4. The Ld. CIT(A), by virtue of the impugned order, confirmed the aforesaid action of the Assessing Officer. 5. Aggrieved, the assessee is in further appeal before us. 6. Challenging the impugned order, the ld. counsel for the assessee has contended, as also supported by the synopsis filed, that mobilization fee is the amount paid to a contractor like the assessee company, by its customers, for movement of material and equipments from one operating area to another; that when a vessel is mobilized from outside India, a substantial portion of the operations are performed outside India; that in the present case the vessel Sasha operated outsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India even otherwise the mobilization charges are not taxable in India. 7. The Ld. DR, on the other hand, has placed strong reliance on the assessment order, contending that Sedco Forex International Inc. (supra) is directly applicable squarely to the facts of the present case and it has rightly been applied by the authorities below; that the assessee is trying to make futile attempt to bring out its case from the purview of Sedco Forex International Inc. even though the assessee has failed miserably show as to how his case is any different from that in Sedco Forex International Inc. (supra). 8. We have heard the parties and have perused the material available on record. In Sedco Forex International Inc. (supra), it was held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in 170 Taxman 459 (UK) to tax the mobilization revenues u/s 44BB of the Act. The ld. AR has strongly contested the A.O.'s action through averments which are a reiteration of what was stated before the ld. A.O. (as recorded on pages 2, 3 and 4 of the impugned order). For the sake of brevity, the same are not repeated here. 3.1 The case of Sedco Forex International Inc. (supra) has been the subject matter of analysis and review in the case of DIT v. Schlumberger Asia Services Ltd. reported in 186 Taxman 436 (UK). In this case it has been held that customs duty, being a statutory levy, cannot form part of receipts of assessee for determining his income u/s 44BB of the Act. The other findings in the case of Sedco Forex have not b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
