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2014 (10) TMI 735 - AT - Income TaxMineral oil, business for prospecting/ exploration, etc. - Taxability of seismic data acquisition and processing services Income deemed to accrue or arise in India - Whether the income of the assessee has to be computed in accordance with the provisions of sec. 44BB of the Act or brought to tax u/s 9 (1) (vii) – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been rightly held that following the decision in CGG Veritas Services, SA Versus Additional Director of Income-tax, (International Taxation) [2012 (4) TMI 280 - ITAT DELHI] - the fee for technical services rendered in connection with prospecting for or extraction or production of mineral oil though effectively connected with PE or fixed place of profession will fall not under section 44BB(1) and will be assessable under section 44DA of the Act - the receipts are not connected with PE in India and hence the fee for technical services rendered in connection with prospecting for or extraction or production of mineral oil will be assessable u/s 115A of the Act – thus, the order of the CIT(A) is upheld - Decided against assessee. Taxability of mobilization/demobilization revenues - Nature of mobilization/demobilization activities – Held that:- Following the decision in SEDCO FOREX INTERNATIONAL INC. (formerly known as Forex Neptune International Inc.) Versus CIT [2007 (9) TMI 196 - UTTARAKHAND HIGH COURT] - Mobilisation is a stage payment, as part of the total consideration for execution of the contract - The assessee would be moving its machinery from one place of work to another place of work - Mobilisation is paid as an advance for such movement and is generally adjusted against running bills - It is not a case where a separate payment is made for a transportation contract - Mobilisation is an incidental activity to the main activity of carrying out the contract in India – Decided against assessee.
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