2018 (4) TMI 247

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....Ld. Commissioner of Income Tax(A)-2, Noida for assessment year 2011-12 whereas ITA 621/Del/2016 has been filed against order dated 23.11.2015 passed by Ld. Commissioner of Income Tax(A)-II, Noida for assessment year 2012-13. Since both the appeals involve identical issues, they were heard together and are being disposed of through this common order for the sake of convenience. 2. With regard to ITA No. 621/Del/2016 in the case of M/s Deepwater Pacific 1 Inc, the Ld. AR fairly conceded that ground no. 1 pertaining to mobilization charges received by the assessee amounting to Rs. 488,429,832/- and pertaining to mobilization of rigs 'DDKG1'and 'DDKG2' outside Indian territorial waters and included in the gross receipts u/s 44BB of the Incom....

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....rtment by the judgment of the Apex Court in the case of Sedco Forex International Inc. Vs. CIT & Another reported 399 ITR 1 (SC). With respect to ground no.4 pertaining to interest received on income tax refund taxed by the lower authorities at maximum marginal rate, it was submitted that this issue was covered in favour of the assessee by the order of ITAT Delhi Bench in the case of Clough Engineering Ltd. vs ACIT (OSD) Dehradun in ITA No. 4771 and 4896/Del/2017 wherein vide order dated 13.4.2017, the ITAT Delhi Bench had held that interest on income tax refund is not effectively connected with Permanent Establishment either on the basis of assets test or activity test and, therefore, interest on income tax refund was held to be taxable un....

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..... As far as ITA No. 621/Del/2016 is concerned, ground nos. 1 and 2 pertaining to reimbursement receipts and held as taxable u/s 44BB of the Act by the department are again held against the assessee by placing reliance on the judgment of the Hon'ble Uttarakhand High Court in the case of CIT vs Halliburton Offshore Services (supra). Hence, ground nos. 1 and 2 are dismissed. 6.1 As far as ground no. 3 pertaining to receipts in respect of demobilisation of rig is concerned, the same is also held against the assessee by respectfully following the judgment of the Hon'ble Apex Court in the case of Sedco Forex International Drilling Co. Ltd. vs CIT & Another (supra). 6.2 Ground no. 4 pertaining to taxing interest income on income tax refund a....