Sedco Forex International Inc. v. CIT

399 ITR 1Supreme Court of India2017#4102 most cited

What is Sedco Forex International Inc. v. CIT authority for?

Section 44BB, which provides for presumptive taxation of profits and gains of business in the case of exploration of mineral oils, does not override the provisions of Sections 5, 9, or 90 of the Income-tax Act, 1961. For business profits to be taxed in India, the existence of a Permanent Establishment (PE) in India must be established by the Revenue.

29

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2017 to 2025.

Also referred to as

Sedco Forex International Inc. v. CIT · Section 44BB · Section 5 · Section 9 · Section 90 · Permanent Establishment · PE · presumptive taxation · business profits · exploration of mineral oils

Also reported as

87 Taxmann.com 29251 Taxmann 459

Sections most often in play

Section 143(3)Section 144C(13)Section 44BBSection 115ASection 234BSection 270ASection 28Section 41

Issues it is cited on

section 293section 44dasection 44dsection 44bbsection 44bsection 209(1)section 42section 72section 115asection 44aapenalty under section 270aunabsorbed depreciation

Judgments citing Sedco Forex International Inc. v. CIT

Mi Overseas Ltd., Mumbai vs. ADIT, Dehradun

In the result ITA number 5584/Del/2013 filed by the assessee for assessment year

ITA 2956/DEL/2013[2006-07]Status: DisposedITAT Dehradun08 Jun 2021AY 2006-07

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Thakur Singh Mapwal, JCIT DR
Section 263Section 44BSection 9

…Therefore, pith and substance of the contract is removal of drilled solids from rigs. Further the decision of the honourable Supreme Court in Sedco Forex international 15. incorporation versus DIT[2017] 87 taxmann.com 29 (SC)/[2017] 251 Taxman 459 (SC)/[2017] 399 ITR 1 (SC)/[2017] 299 CTR 1 (SC) while deciding the issue of mobilization fees has held that when the contracts are indivisible, it is not appropriate to treat the various receipts of the contract differently. Therefore, material used for performance of contract cannot be treated differently than other consideration received. In fact, it is a composite c…

Mi Overseas Ltd., New Delhi vs. ADIT, Dehradun

In the result ITA number 5584/Del/2013 filed by the assessee for assessment year

ITA 3072/DEL/2012[2009-10]Status: DisposedITAT Dehradun08 Jun 2021AY 2009-10

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Thakur Singh Mapwal, JCIT DR
Section 263Section 44BSection 9

…Therefore, pith and substance of the contract is removal of drilled solids from rigs. Further the decision of the honourable Supreme Court in Sedco Forex international 15. incorporation versus DIT[2017] 87 taxmann.com 29 (SC)/[2017] 251 Taxman 459 (SC)/[2017] 399 ITR 1 (SC)/[2017] 299 CTR 1 (SC) while deciding the issue of mobilization fees has held that when the contracts are indivisible, it is not appropriate to treat the various receipts of the contract differently. Therefore, material used for performance of contract cannot be treated differently than other consideration received. In fact, it is a composite c…

Bj Services Company Me Ltd., Noida vs. DCIT (International Taxation), Dehradun

In the result, appeal filed by the assessee is dismissed

ITA 6223/DEL/2016[2012-13]Status: DisposedITAT Dehradun04 May 2021AY 2012-13

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishibj Services Company Me Ltd,] Vs. Dcit (International Taxation ), C/O. Nangia & Company, Circle-1, A-109, Sector-136, Noida Dehradun Pan: Aaacb8529N (Appellant (Respondent)

For Appellant: Shri Amit Arora, CAFor Respondent: Shri Thakur Singh Mapwal, JCIRT DR
Section 143Section 44Section 44BSection 44D

…INCOME TAX APPELLATE TRIBUNAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER BJ Services Company ME Ltd,] Vs. DCIT (International Taxation ), C/o. Nangia & Company, Circle-1, A-109, Sector-136, Noida Dehradun PAN: AAACB8529N (Appellant (Respondent) Assessee by: Shri Amit Arora, CA Shri Itesh Dodhi, CA Revenue by : Shri Thakur Singh Mapwal, JCIRT DR Date of Hearing 04/03/2021 Date of pronouncement 08/06/2021 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by the assessee against the order of the ld CIT (A)-2, Noi…

Byk Asia Pacific Pte Limited, Pune vs. ACIT(It), Circle-1, Pune

In the result, the appeal is partly allowed

ITA 2110/PUN/2019[2016-17]Status: DisposedITAT Pune24 Mar 2021AY 2016-17

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryआयकर अपील सं. / Ita No.2110/Pun/2019 िनधा"रण वष" / Assessment Year : 2016-17

Section 143(3)Section 195Section 40

…n the payment, unlike the other expenses as discussed above, the ld. AR could not lead any evidence to demonstrate that the allocation of IT expenses to the Indian BO was without any markup in the given facts. In Sedco Forex International Inc VS. CIT (2017) 399 ITR 1 (SC), the assessee entered into contract with ONGC for hire of their rig for carrying out oil exploration activities in India, for which it was paid mobilization fee. The AO included such amount for computation of deemed profits u/s 44BB. The assessee, inter alia, contended before the Hon’ble Supreme Court that the receipt was in the nature of re…

DCIT(International Taxation)-3(3)(1), Mumbai vs. M/S. Nabors Drilling International Limited, Mumbai

In the result, all the appeals of the revenue are dismissed

ITA 1215/MUM/2019[2014-15]Status: DisposedITAT Mumbai05 Mar 2020AY 2014-15

Bench: Shri Laliet Kumar, Jm & Shri M.Balaganesh, Am & Deputy Commissioner Of Vs. M/S. Nabors Drilling Income Tax, (International Internationallimited Taxation)-3(3)(1) C/O. Nangia & Co Ca’S R.No.1630, 16Th Floor 1101, Tower-B, Peninsula Air India Building, Business Park, Ganpat Rao Nariman Point, Kadam Marg, Lower Parel Mumbai – 400 021 Mumbai - 400013 Pan/Gir No.Aadcn7265N (Appellant) .. (Respondent) Deputy Commissioner Of Vs. M/S. Jet Drilling(S) Pte.Ltd 1St Floor, Ajanta Executive Income Tax, (International Taxation)-3(3)(1) Centre, 8, Juhu Tara Road R.No.1630, 16Th Floor Juhu, Mumbai-400 064 Air India Building, Nariman Point, Mumbai – 400 021 Pan/Gir No.Aabcj9895N (Appellant) .. (Respondent) Deputy Commissioner Of Vs. M/S. Novodrill Limited Income Tax, (International C/O. Nangia & Co. Ca’S Taxation)-3(3)(1) 1101, Tower-B, Peninsula R.No.1630, 16Th Floor Business Park, Ganpat Rao Air India Building, Kadam Marg, Lower Parel Nariman Point, Mumbai – 400 013 Mumbai – 400 021 Pan/Gir No.Aadcn0630M (Appellant) .. (Respondent) आदेश / O R D E R Per Bench: These Appeals In Ita Nos. 1215/Mum/2019, 1216/Mum/2019, 1321/Mum/2019 & 1214/Mum/2019 For A.Yrs.2014-15 & 2015-16 Arise Out Of The Order By The Ld. Commissioner Of Income Tax (Appeals)-57, Mumbai In Appeal Dated 27/12/2018, 28/12/2018 & 20/12/2018 Respectively (Ld. Cit(A) In Short) Against The Order Of Assessment Passed U/S.143(3) R.W.S. 144C(3) & 143(3) R.W.S. 144C(13) Of The Income Tax Act, 1961 Respectively (Hereinafter Referred To As Act) Dated, 27/12/2016 27/12/2017, 08/02/2017 & 29/12/2016 Respectively By The Ld. Dy.Commissioner Of Income Tax(It)-3(3)(1), Mumbai (Hereinafter Referred To As Ld. Ao).

Section 143(3)Section 194JSection 44B

…ssee and by placing reliance on the decision of Hon’ble Uttarakhand High Court in the case of CIT vs Schlumberger Asia Services Ltd reported in 317 ITR 156 and the decision of Hon’ble Apex Court in the case of Sedco Forex International Inc. vs CIT reported in 399 ITR 1 (SC) decided the issue in favour of the assessee. Before us, the ld AR placed on record the said decision of the Hon’ble Apex Court in 399 ITR 1 (SC) supra wherein it was held as under:- “51) In this batch of appeals, Civil Appeal No. 3695 of 2012 is the solitary appeal which is preferred by the Director of Income Tax, New Delhi (Revenue) against t…

Allseas Marine Contractors Sa, Mumbai vs. DDIT (It) 1(1), Mumbai

In the result, the appeal is partly allowed

ITA 4656/MUM/2015[2008-09]Status: DisposedITAT Mumbai07 Sept 2018AY 2008-09

Bench: Shri Saktijit Dey () & Shri N.K. Pradhan () Assessment Year: 2008-09 Allseas Marine Contractors Dy. Director Of Income Sa C/O Nangia& Company Tax-(International) Vs. Unit No. 1101, 11Th Floor, B Taxation)-1(1) Wing, Peninsula Business Mumbai. Park, Ganpatraokadam Marg, Lower Parel, Mumbai-400013. Pan No. Aagca0967P Appellant Respondent Assessee By : Mr. Porus Kaka, Senior Advocate Revenue By : Mr. M.V. Raj Guru, Dr Date Of Hearing : 11/06/2018 Date Of Pronouncement : 07/09/2018

For Appellant: Mr. Porus Kaka, Senior AdvocateFor Respondent: Mr. M.V. Raj Guru, DR
Section 143(3)Section 44BSection 5Section 9

…IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “L” MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) Assessment Year: 2008-09 Allseas Marine Contractors Dy. Director of Income SA C/o Nangia& Company Tax-(International) Vs. Unit No. 1101, 11th floor, B Taxation)-1(1) Wing, Peninsula Business Mumbai. Park, GanpatraoKadam Marg, Lower Parel, Mumbai-400013. PAN No. AAGCA0967P Appellant Respondent Assessee by : Mr. Porus Kaka, Senior Advocate Revenue by : Mr. M.V. Raj Guru, DR Date of Hearing : 11/06/2018 Date of pronouncement : 07/09/2018 ORDER PER N.K. PRADHAN, AM This…

Sundowner Offshore International (Bermuda) Ltd., New Delhi vs. DCIT (International Taxation), Dehradun

In the result appeal of the assessee is dismissed

ITA 972/DEL/2016[2012-13]Status: DisposedITAT Delhi27 Nov 2017AY 2012-13

Bench: Shri Kuldip Singh & Shri Prashant Maharishisundowner Offshore International Vs. Dcit (International Taxation), (Bermuda) Ltd, Circle-2, Subhash Road, C/O. Nangia & Company, Dehradun Suite 4A, Plaza M-6, Jasola, New Delhi Pan:Aaacw8208M (Appellant) (Respondent)

For Appellant: Shri Amit Arora, CAFor Respondent: Shri GK Dhall, CIT DR
Section 143(3)Section 144C(3)(b)Section 44BSection 5Section 9

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Sundowner Offshore International Vs. DCIT (International Taxation), (Bermuda) Ltd, Circle-2, Subhash Road, C/o. Nangia & Company, Dehradun Suite 4A, Plaza M-6, Jasola, New Delhi PAN:AAACW8208M (Appellant) (Respondent) Assessee by : Shri Amit Arora, CA Revenue by: Shri GK Dhall, CIT DR Date of Hearing 27/11/2017 Date of pronouncement 27/11/2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by the assessee against the order of the ld Assessing Officer…

Wavefield Inseis Asa, New Delhi vs. DCIT (International Taxation), Dehradun

In the result appeal of the assessee is dismissed

ITA 971/DEL/2016[2011-12]Status: DisposedITAT Delhi27 Nov 2017AY 2011-12

Bench: Shri Kuldip Singh & Shri Prashant Maharishiwavefield Inseis Asa, Vs. Dcit (International Taxation), C/O. Nangia & Company, Circle-2, Subhash Road, Suite 4A, Plaza M-6, Jasola, Dehradun New Delhi Pan:Aaacw8208M (Appellant) (Respondent)

For Appellant: Shri Amit Arora, CAFor Respondent: Shri GK Dhall, CIT DR
Section 143(3)Section 144C(13)Section 44BSection 5(2)Section 9

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE SHRI KULDIP SINGH, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Wavefield Inseis ASA, Vs. DCIT (International Taxation), C/o. Nangia & Company, Circle-2, Subhash Road, Suite 4A, Plaza M-6, Jasola, Dehradun New Delhi PAN:AAACW8208M (Appellant) (Respondent) Assessee by : Shri Amit Arora, CA Revenue by: Shri GK Dhall, CIT DR Date of Hearing 27/11/2017 Date of pronouncement 27/11/2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by the assessee against the order of the ld Assessing Officer dated 28.12.2015 passed u/…

M/S. Bj Services Company Middle East Limited, New Delhi vs. Addl.DIT, Dehradun

In the result we find no infirmity in the order of the lower authorities

ITA 5947/DEL/2014[2011-12]Status: DisposedITAT Delhi21 Nov 2017AY 2011-12

Bench: Shri H.S.Sidhu & Shri Prashant Maharishibj Services Company Middle East Vs. Addl. Dit, Ltd, International Taxation, C/O Nangia & Co. Suite 4A Plaza, Dehradun M-6, Jasola, New Delhi, Pan:Aaacb8529N (Appellant) (Respondent)

For Appellant: Shri Amit Arora, CAFor Respondent: Smt. Aparna Karan, CIT DR
Section 44B

…nt forms part of the gross receipt for computing income u/s 44BB of the Act. 4. The LD AR fairly conceded that this issue is covered now against the assessee by e decision of the Hon'ble Supreme Court in case of Sedco Forex International Incorporation vs. CIT 87 Taxmann.com 29. The ld DR also submitted that the issue is now covered against the assessee. 5. We have carefully considered the rival contentions. The Hon'ble Supreme Court in that above decision of Sedco Forex International Ltd ( supra) has held that reimbursement of expenses is required to be included for the purpose of computation of deemed profit cha…