M/S R & B Falcon (A) Pvt. Ltd v. The Assistant Commissioner Of Income Tax

IN THE HIGH COURT OF UTTARAKHAND ATNAINITAL INCOME TAX APPEAL NO. 59 OF 2008 M/s R & B Falcon (A) Pvt. Ltd., C/o Nangia & Co., 75/7, Rajpur Road, Dehradun. …………Appellant. Versus The Assistant Commissioner of Income Tax, Circle-1, Dehradun. …………….Respondent. Mr. S.K. Posti, learned counsel for the appellant. Mr. Arvind Vashisth, learned counsel for the respondent. Dated: 29th December, 2008Coram: Hon’ble P.C. Verma, J.Hon’ble Sudhanshu Dhulia, J. This appeal has been preferred against the judgment and order dated 22.8.2008 passed by the Income Tax Appellate Tribunal ‘F’ Bench, New Delhi (Tribunal) in Income Tax Appeal No. 4611/Del./2007 for Assessment Year 2005-06 whereby the Tribunal has reversed the order passed by the CIT (Appeals) and confirmed the assessment made by the Assessing Officer by upholding inclusion in the gross revenue of the appellant reimbursement of payments for the purpose of Section 44BB of the Income Tax Act. 2. Following questions of law have been framed in the memo of appeal : “a. Whether on facts and in the circumstances of the case, the Ld. Tribunal erred in law in not appreciating the true construction of Section 44BB of the Act? b. Whether on the facts and in the circumstances of the case, the Tribunal was legally correct in hlding that a sum of Rs. 49,65,999 received by the appellant from Oil & Natural Gas Corporation Limited (hereinafter referred to as “ONGC”) as reimbursement on account of actual expenses incurred by the appellant was to be included in calculating the aggregate amount referred to in sub-section (2) of section 44BB of the Act? c. Whether on the facts and in the circumstances of the case, the findings arrived at by the Ld. Tribunal are perverse in as much as no reasonable person correctly informed of the position of law would come to such conclusion?” 3. The facts of the present case are similar to the facts of Commissioner of Income Tax andanother Vs. Halliburton Offshore Services Inc. as reported in [2008] 300 ITR 265 (Uttarakhand))well as judgment dated 20[th] September, 2007 comeTax Appeal No. 280 of 2001 (Old No. 99 of 1999)Sedco Forex International Inc. Vs. Commissioner of Income Tax and another. 4. Both the parties have agreed too that present case is squarely covered by the judgment passed in Commissioner of Income Tax and another Vs. Halliburton Offshore Services Inc.reported in [2008] 300 ITR 265 (Uttarakhand)as well as judgment dated 28th September, 2007 passed in ITA No. 280 of 2001 (Old No. 99 of 1999) Sedco Forex International Inc. Vs. Commissioner of Income Tax, Meerut and another, and the present appeal may be disposed in the same manner. 5. In view of the aforesaid, the questions of law raised in the present the appeal are decided accordingly. 6. Appeal is disposed of in terms of the aforesaid cited judgments. No order as to costs. (S. Dhulia, J.) (P.C. Verma, J.) 29.12.2008 29.12.2008 Rathour