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2014 (9) TMI 514 - AT - Income TaxApplication of section 44BB – Deemed profit rate @ 25% - Whether part of the payment received by the assessee can be considered as fee for technical services and whether the other part would be assessed under the presumptive tax of Sec. 44BB of the Act - Held that:- The scope of the work is not limited to the transportation of coated pipes alone, but also for many other activities listed in the scope of work and price schedule - The assessee is engaged in providing services in connection with prospecting for, or extraction or production of mineral oils by ONGC - by sub-contract agreement between Engineers India Ltd and the assessee, the assessee was given a turnkey project for laying and installation of pipe lines - when a contract consists of a number of terms and conditions each condition does not form separate contract. The assessee is a non-resident which is engaged in the business providing services or facility in connection with the prospecting for, or extraction of production of mineral oil, its income has to be computed as per the provision of Section 44BB - the argument of revenue is not the basis on which either the AO or the CIT(A) have come to a conclusion, that the provisions of Section 44BB do not apply - the claim of the assessee that the income in question is to be determined by applying the provision of Section 44BB is to be upheld – Decided partly in favour of assessee.
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