Commissioner, Income Tax, Dehradun And Another v. J.s. Khehar, C.j, (Oral

IN THE HIGH COURT OF UTTARAKHAND ATNAINITALIncome Tax Appeal No. 146 of 2007 Commissioner, Income Tax, Dehradun and another. ………..Appellants. Versus M/s Coflexip Stena Offshore Pvt. Ltd., Ratan S. Mama & Co., World Trade Centre, Barakhamba Lane, New Delhi. …Respondent. Mr. Arvind Vashisth, Advocate for the appellants. Mr. S.K. Posti, Advocate for the respondent. Coram:Hon’ble J.S. Khehar, C.J. Hon’ble Sudhanshu Dhulia, J. J.S. Khehar, C.J, (Oral) The following two questions, according to the learned counsel for the rival parties, arose for consideration in the present Appeal:- “1. Whether Hon’ble ITAT was legally justified in upholding the order of Ld. CIT (A)-I, Dehradun on the point of deletion of interest U/S 234B of the I.T. Act? 2. Whether the Hon’ble ITAT was legally justified in treating revenue of USD 15,53,000/- from mobilization and demobilization as outside India activities and therefore, not taxable in India.” Insofar as first issue is concerned, it is the common case of the learned counsel for the rival parties that the same stands adjudicated upon by a Division Bench of this Court in Commissioner of Income Tax Vs. Tide Water Marine International Inc. [2009] 309 ITR 85 (Uttarakhand). The aforesaid issue has been decided in favour of the assessee by the Division Bench, under reference. In view of the admitted position, the instant Appeal, insofar as the first issue is concerned, is dismissed in view of the order passed by this Court in Commissioner of Income Tax Vs. Tide Water Marine International Inc. [2009] 309 ITR 85 (Uttarakhand). Insofar as the second question of law is concerned, it is also agreed by the learned counsel for the rival parties that the same is squarely covered by the decision of another Division Bench of this Court in Sedco Forex International Inc. Vs. Commissioner of Income Tax and another [2008] 299 ITR 238 (Uttarakhand). On the second question of law, the aforesaid Division Bench has rendered its decision in favour of the Revenue. In view of the above, on the issue determined by the Income Tax Appellate Tribunal under Section 44BB of the Income Tax Act, 1961, the finding recorded by the Tribunal is liable to be set aside in terms of the decision rendered by this Court in Sedco Forex’s case (supra). Ordered accordingly. The instant Income Tax Appeal stands disposed of in the aforesaid terms. (Sudhanshu Dhulia, J.) (J.S. Khehar, C.J.) 31.3.2010 Rathour