TaxTMI 
TaxTMI 
2009 (2) TMI 46
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....Appellate Tribunal, Delhi Bench 'G' New Delhi, in I.T.A. No. 4762/Del/2005 for the assessment year 2004-05. The Income Tax Appellate Tribunal (ITAT) has dismissed the appeal of the appellant/Revenue by holding that CIT (A) has rightly held in both the cases that the proportionate receipts were taxable in India. 2. It appears from the perusal of the prayer made in the memo of the appeal that only one appeal has been filed to set aside the composite judgment dated 10.10.2005 passed by CIT (Appeals). This appeal has been filed by the Revenue Department against only one assessee-Sundowner Offshore International (Burmuda) Ltd., C/o Nangia & Co. 75/7 Rajpur Road, Dehradun. 3. Brief facts of the case are that the assessee is a non-resident c....
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....d in India territorial waters, therefore, amounts to 2.0121%. Thus, the proportionate revenue taxable in India amounts to Rs.9,47,4778/-. The appellant gets relief accordingly." The Revenue Department preferred the appeal before the ITAT against the judgment of CIT (A) and the ITAT after having considered the rival submissions raised by learned counsel for the parties and having perused the entire material available on record has held that CIT (A) has rightly directed the Assessing Officer in both the cases that the proportionate receipts were taxable in India and the receipts of the non-resident outside India were not taxable under Section 44BB of the Income Tax Act. The ITAT has further held that the facts of the instant case are similar ....
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....med profits and gains of the assessee @ 10 per cent. Sub-section (2) provides that amounts referred shall be amount paid or payable to the assessee (whether in or out of India) and the amount received or deemed to be received in India on account of the provision of 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 oils in India. Reimbursement of catering expenses etc. is also liable to be included. This is receipt and is taxable. Therefore, the Assessing Officer was right in adding the above amount which was received by the assessee non-resident company from the ONGC. Therefore, in our opinion, the ITAT fell into error in ....
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....ee is not the reimbursement of expenditure. ONGC was liable to pay a fixed sum as stipulated in the contract regardless of actual expenditure which may be incurred by the assessee company for the purpose. In view of the fictional taxing provision contained under Section 44BB, the Assessing Officer was right in adding the amount of Rs.99,04,000/- for the Assessment Year 1986-87 and amount worth Rs.64,64,530/- for the Assessment Year 1987-88 received by the assessee towards mobilization charges for the purpose of imposing income tax and CIT (Appeals) and ITAT were also right in upholding the order of the Assessing Officer." 10. The Division Bench of this Court has thus dismissed the appeal of the assessee by answering the question in favou....