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2020 (9) TMI 242 - GUJARAT HIGH COURTFees for technical services received by the foreign company from an Indian concern - Chargeable to tax under Section 44BB v/s 44D - Indian permanent establishment of company - whether assessee’s case is covered u/s 44BB and not u/s 44D r.w.s.115A ? - whether classified as “Indian Concern” in context of sec.44D r.w.s.115A of I.T. Act, 1961 as the company is incorporated Canada ? - Special provision for computing profits and gains in connection with the business of exploration, etc. of mineral oils - HELD THAT:- As relying on OIL & NATURAL GAS CORPORATION LIMITED VERSUS COMMISSIONER OF INCOME TAX & ANOTHE [2015 (7) TMI 91 - SUPREME COURT] payment made by respondent to HUB International for providing supervising drilling operations in oil fields, may be “Fees for technical services” but the dominant purpose of payment of fees for technical services was for exploration and development of Oil and Gas in India. There is no infirmity in the impugned order of the Tribunal, holding that the provisions of Section 44D of the Act is not applicable in the facts of the present case and from the payment made to HUB International Limited, respondent would be liable to deduct TDS at the rate of 4.2%, under the provisions of Section 44BB of the Act. Amount paid by the respondent to the HUB International Limited would be covered by Section 44BB and not under section 44D r.w.s. 115A of the Act, Question (A) is answered in favour of assessee.
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