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2015 (2) TMI 396 - AT - Income TaxComputation of income u/s 44BB - providing services of vessel management services in India - Held that:- Hon'ble Delhi High Court in PGS Geophysical AS Versus Additioanal Director of Income Tax [2014 (7) TMI 723 - DELHI HIGH COURT] vide para 20 has held that income of assessees engaged in such activities can be taxed u/s 44BB only if the two conditions are fulfilled. One of the conditions is existence of PE in India and second is regarding effective connection of such contract with the PE in India - Decided in favor of assessee. Interest u/s 234B - Held that:- Not to charge interest u/s 234B in respect of all contracts entered into by the assessee with various organizations in India except with respect of the contracts entered into with HOEC and ONGC. As far as income taxable u/s 44BB in respect of various contracts are concerned, the assessee itself has accepted the liability from the very beginning and, therefore it cannot be inferred that assessee would have made any representation which would have influenced the deductor companies for not deducting the tax. However, as far as contract with HOEC and ONGC are concerned, as we have held that income arose in India, therefore, the interest u/s 234B is leviable. Therefore, following the above, we hold that interest was not chargeable u/s 234B of the Act. - Decided in favour of assessee.
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