TMI Blog2018 (4) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... ore Services Inc. (2007 (9) TMI 230 - UTTARAKHAND HIGH COURT) wherein the Uttarakhand High Court had held that reimbursement of expenses were includible in the gross receipts for purposes of determination of income u/s 44BB of the Act. Interest received on income tax refund taxed by the lower authorities at maximum marginal rate - Held that:- Interest on income tax refund is not to be included in the presumptive income and is to be charged to tax @ 15% as prescribed by Article XI of the Indo US Double Taxation Avoidance Agreement. See Asstt. CIT Versus Clough Engineering Ltd. [2011 (5) TMI 562 - ITAT, DELHI]. Thus, ground is allowed in favour of the assessee. - ITA No. 620/Del /2016, ITA No. 621/Del /2016 - - - Dated:- 31-1-2018 - Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and in favour of the revenue by the judgment of the Uttarakhand High Court in the case of CIT vs Halliburton Offshore Services Inc. (2008) 300 ITR 265 (Uttarakhand) wherein the Uttarakhand High Court had held that reimbursement of expenses were includible in the gross receipts for purposes of determination of income u/s 44BB of the Act. 3. With respect to ITA No. 621/Del/2016 in the case of Transocean Discoverer 534 LLC, the Ld. AR again fairly conceded that ground nos. 1 and 2 were again covered against the assessee and in favour of the revenue by the judgment of the Uttarakhand High Court in the case of CIT vs Halliburton Offshore Services Inc. (2008) 300 ITR 265 (Uttarakhand) where the Hon ble Uttarakhand High Court had held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no objection of the department to the averments of the Ld. AR. Accordingly, the issues are decided as under: 5.1 With respect to ground no. 1 in ITA No. 620/Del/2016 which pertains to amount received for mobilisation of rigs outside Indian territorial waters, respectfully following the judgment of the Hon ble Apex Court in the case of Sedco Forex International Inc vs CIT Another (supra), we dismiss this ground raised by the assessee as in this judgment, the Hon ble Apex Court has held that mobilisation fee is includible in deemed profits for the purpose of presumptive taxation. 5.2 With respect to ground no. 2 in ITA No. 620/Del/2016 pertaining to the issue of including reimbursement for expenses in the gross receipts for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess income in the nature for establishing the effective connection with the PE because that would render provision contained in paragraph 4 of Article XI redundant. Thus, there may be cases where interest may be taxable under the Act under the residuary head and yet be effectively connected with the PE. The bank interest in this case is an example of effective connection between the PE and the income as the indebtedness is closely connected with the funds of the PE. However, the same cannot be said in respect of interest on income tax refund. Such interest is not effectively connected with PE either on the basis of asset test or activity test. Accordingly, it is held that this part of interest is taxable under paragraph No. 2 of Article XI. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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