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2011 (1) TMI 123 - AT - Income TaxAddition of income - The AO issued notice u/s 142(1) dated 18.10.2002 calling upon the assessee to substantiate its claim as to how the mobilization of rig would not be taxable in India in view of the provisions of section 44AB of the Act - Assessee contended that the mobilization fee accrued to the assessee outside India since it was in respect of mobilizing the rig from outside India to its first location in India - as per the provisions of section 44BB, the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the provision of services and facilities in connection with extraction or production of, mineral oils in India is taxable in India - When there is no provision for payment of any repairs and maintenance of the rig in the agreement then the payment received by the assessee under any head or nomenclature would deemed as payment for the operation carried out in India and therefore the income has accrued/arisen in connection with the business operation of the assessee in India - Hence, the explanation (1)(a) to section 9(1)(i) is not applicable in the facts and circumstances of the case - The appeal of the revenue is allowed
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