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2019 (5) TMI 424

e supply vessel in respect of all the contracts mentioned in the Assessment Order. In the present case also the amount which is paid to the assessee is towards the expenses incurred on behalf of the payer and no where mentions that it is for reimbursement of expenses. The assessee also relied upon the decision of Sedco Forex International Inc. which is now decided by the Hon’ble Apex Court [2017 (11) TMI 78 - SUPREME COURT] against the assessee. Receipts qualified for determination of income under Section 44BB of the Act has been decided in favour of the assessee in assessee’s own case for A.Y. 2011-12 Taxability of receipts on account of mobilization for the activities carried outside Indian Territorial Waters - includibie in the revenue taxable u/s 44BB - HELD THAT:- The provision of Section 44BB considers inclusion of all kind of amount paid or payable to the assessee or to any person on his behalf on account of the provision of services or 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. Thus, both the grounds are dismissed. - ITA No. 404 .....

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ment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal. 5. As regards Ground No. 1, the Ld. AR submitted that the issue contested by the assessee is squarely covered against the assessee by the decision of the Hon ble Apex Court in case of Sedco Forex International Inc. vs. CIT (CA No. 4906/10 judgment dated 30.10.2017). 6. The Ld. DR relied upon the decision of Apex Court in case of Sedco Forex International Inc. (supra) as well as the Assessment order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. The Hon ble Apex Court in case of Sedco Forex International Inc. (supra) held as under: 47) Section 44BB starts with non-obstante clause, and the formula contained therein for computation of income is to be applied irrespective of the provisions of Sections 28 to 41 and Sections 43 and 43Aof the Act. It is not in dispute that assessees were assessed under the said provision which is applicable in the instant case. For assessment under this provision, a sum equal to 10% of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of .....

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by the Department vide its Circular No. 495 dated September 22, 1987, namely, to simplify the computation of taxable income as number of complications were involved for those engaged in the business of providing 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 etc. Instead of going into the nitigrities of such computation as per the normal provisions contained in Sections 28 to 41 and Sections 43 and 43A of the Act, the Legislature has simplified the procedure by providing that tax shall be paid @10% of the aggregate of the amounts specified in sub-section (2) and those amounts are deemed to be the profits and gains of such business chargeable to tax... . It is a matter of record that when income is computed under the head profits and gains of business or profession , rate of tax payable on the said income is much higher. However, the Legislature provided a simple formula, namely, treating the amounts paid or payable (whether in or out of India) and amount received or deemed to be received in India as mentioned in sub-section (2) of Section 44BB as the deemed profi .....

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A.Y. 2011-12 being ITA No. 6166/Del/2014 order dated 31.10.2017. 9. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). 10. We have heard both the parties and perused all the relevant material available on record. The Tribunal in A.Y. 2011-12 held as under: 6. Further, on the issue of operation of the amendment to section 44BB and 44DDA, the Ld. CIT-(A) has observed that considering the interpretation contained in the case of OTIM Ltd., reported in 352 ITR 406 (Del), the position of the case would not change specially when the services are squarely covered in consonance with what is envisaged under section 44BB of the Act. We find that the Tribunal (supra) has also held the services rendered as envisaged under section 44BB of the Act. The Ld. CIT (A) has followed the decision of the jurisdictional High Court on the issue in dispute and thus, we do not find any error in the finding of the ld. CIT-A. Section 44DA specifically covers income in the nature of fees for technical services received by a non-resident from the Indian Government and/or an Indian Concern. Any income in the nature of fees for technical services received by a non-resident from another non-re .....

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e decision of the Hon'ble Supreme Court in case of Sedco Forex International Inc. vs. CIT (supra). 16. We have heard both the parties and perused the material available on record. As regards Assessment Year 2013-14, the issue contested by the assessee is squarely covered against the assessee by the decision of the Hon ble Apex Court in case of Sedco Forex International Inc. (supra) wherein it has been held that: a. That mobilization charges are to be included in gross receipts for the purpose of provisions of section 44BB of the Income Tax Act, 1961. b. The reimbursement charges are to be included in gross receipts for the purpose of provisions of section 44BB of the Income Tax Act, 1961. In the present Assessment Year also the assessee was in receipt of certain amounts being reimbursements of actual expenditure incurred. The provision of Section 44BB considers inclusion of all kind of amount paid or payable to the assessee or to any person on his behalf on account of the provision of services or 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. Thus, both th .....

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