TMI Blog2012 (4) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... aw in completing assessment under section 144C/143(3) of the Income-tax Act, 1961 ( the Act ) at an income of ₹ 345,797,960/- as against the income of ₹ 345,797,960/- [actually Rs. 320,013,901/-] returned by the appellant. 2. That the Assessing Officer erred on facts and in law in adding a sum of Rs. 257,840,586/- to the gross receipts of the appellant to be taxed u/s 44BB without appreciating that the said amount represented reimbursement of actual expenses incurred by the appellant. Levy of Interest 1. That the Assessing Officer erred on facts and in law in levying interest u/s 234B of the Act especially when there was no liability on the assessee to pay advance tax u/s 209(1)(d) of the Income-tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gross receipts. However, the assessee pleaded that their income was to be determined in terms of provisions of section 44BB of the Act. Since the reimbursement of expenses was inextricably linked to the services/ work rendered by the assessee, the AO treated these amounts as part of the taxable gross receipts towards fee for technical services. Accordingly, the AO while relying decision of Uttarakhand. High Court in the case of CIT Vs. Halliburton Offshore Services Inc.,300 ITR 265 and referring to various other decisions; CIT vs. Atwood Oceanics Pacific Ltd.,2010-TII-12-HC-Uttarakhand,CIT Vs. R B Falcon Drilling Co. (Uttrakhand High Court) (2009) TII-20-HC-Ukhand-INTL dated April 24, 2009; CIT Vs. M/s Sundowner Offshore International ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No.2: This ground relates to Assessing Officer s proposal to tax the reimbursement of fuel and material recharge as fees for technical service. The Panel has considered the submissions made. It is noted that this issue has been decided in favour of the department by the Jurisdictional High Court in the case of Halliburton Offshore Service Inc (300 ITR 265) wherein it has been held that reimbursement of expenditure is includible in the taxable income u/s 44BB. It has been stated by the assessee that subsequent to the above decision the Uttarkhand High Court has decided the matter in favour of the assessee in the case of Schlumberger Asia Services Ltd. (317 ITR 156). However as the appeals of the assessee and department are pending in ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India, and (B) payable to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India. Clause (b) of sub-s. (2) refers to the amounts, (A) received by assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India, and (B) deemed to be received by the assessee in India on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt company rendering services as per provisions of s. 44BB to the ONGC and imposed the income-tax thereon. 5.1 Moreover, a co-ordinate Bench in their decision dated 13.12.2010 in the assessee s own case in CO no.251/Del./2010 while adjudicating an identical issue in relation to reimbursements towards helicopter recharge, followed the decision of Hon ble Uttarakhand High Court in Sedco Forex International Inc. vs. CIT,299 ITR 238 and dismissed the CO filed by the assessee while upholding the findings of the ld. CIT(A) that the reimbursements towards helicopter recharge is exigible to tax in terms of provisions of sec. 44B of the Act. 5.2 In the light of view taken by the Hon ble jurisdictional High Court in their aforesaid decisions, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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