Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (1) TMI 1851 - AT - Income TaxAccrual of income in India - reimbursement of expenses by BG Exploration and Production India Limited (‘BGEPIL’) to the appellant for services rendered - As stated that the assessee is rendering services to BG Exploration and Production India Limited (BGEPIL) and BGEPIL is reimbursing expenses to the assessee, therefore, there is no income which could be chargeable to tax in India - HELD THAT:- As decided in own case for assessment years 2008-09 to 2010-11 we hold that the amount received by the assessee from BGEPIL is taxable and cannot be accepted to be reimbursement of expenses by BGEPIL to the assessee. However, the assessee’s alternate contention that the above receipt should be taxed as per provisions of section 44BB is accepted. Thus the amount received by the assessee from BGEPIL cannot be accepted to be reimbursement of expenses by BGEPIL to the assessee and the same is taxable in India. Payments received by the appellant from BGEPIL - taxable in terms of section 44DA of the Act as opposed to section 44BB - HELD THAT:- Section 44DA would be applicable where the income by way of royalty or fees for technical services is received from the Government or an Indian concern in pursuance to an agreement made by a non-resident or a foreign company with Government or Indian concern after 31st day of March, 2003. In the case under consideration before us, admittedly, the payment is neither received from the Government nor from an Indian concern. Therefore, Section 44DA would not be applicable and, the decisions of ITAT in assessee’s own case in earlier years holding that the income of the assessee is to be determined as per Section 44BB, would hold good. We, therefore, respectfully following the decisions of ITAT in earlier years, direct the Assessing Officer to determine the income of the assessee by applying Section 44BB. Levying interest under section 234B - HELD THAT:- As relying on own case we hold that the assessee was not liable to pay interest under Section 234B.
|