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2019 (2) TMI 1422 - AT - Income TaxRevenues earned by assessee for providing vessels on hire to be used for undertaking seismic data acquisition and onboard processing - application of deemed profit rate of 10% u/s 44BB - action of the AO to bring the revenue to tax as royalty u/s 9(1 )(vi) at an estimated net income @15% of gross receipts r.w.s 44DA - whether Section 44BB has application in the case of the Assessee? - claim of the assessee U/s 44BB of I.T. Act is based on the contention that it has supplied plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils - proper marshalling of facts - HELD THAT:- It is necessary for the claim of the assessee for applicability of Section 44BB of I.T. Act to succeed, that the vessels given on hire by the Assessee are shown to be fitted with necessary equipments, and having the technical capacity for use in the prospecting for, or extraction or production of, mineral oils. In addition, it is also necessary for assessee’s claim U/s 44BB of I.T. Act to succeed, that the vessels used by PGS Norway and PGS Singapore for their contract with ONGC and RIL were the same vessels (fitted with necessary equipments, and has the technical capacity for use in the prospecting for, or extraction or production of, mineral oils) that were taken on hire by PGS Norway and PGS Singapore from the assessee. On perusal of the aforesaid order dated 02.12.2014 of DRP, we find that there is no mention in the order of the DRP that these requirements are fulfilled in the case of the assessee. The order of DRP is silent on the crucial facts as to whether the vessels hired by the Assessee to these companies i.e PGS Norway and PGS Singapore are fitted with necessary equipments, and has the technical capacity for use in the prospecting for, or extraction or production of, mineral oils; and whether the vessels used by PGS Norway and PGS Singapore for their contract with ONGC and RIL were the same vessels (fitted with necessary equipments, and having the technical capacity for use in the prospecting for, or extraction or production of, mineral oils) that were taken on hire by PGS Norway and PGS Singapore from the assessee.
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