TMI Blog2010 (5) TMI 453X X X X Extracts X X X X X X X X Extracts X X X X ..... , or production of mineral oils in India. - the same is squarely covered, in favour of the Revenue and against the respondent / assessee, in view of the judgment rendered in Sedco Forex International Inc.'s case (2007 -TMI - 3679 - UTTARAKHAND HIGH COURT). - 93 of 2007 - - - Dated:- 19-5-2010 - J.S. Khehar, Sudhanshu Dhulia, JJ.. Mr. Arvind Vashishth, Advocate for the appellants. Mr. S.K. Posti, Advocate for the respondent. JUDGMENT J.S. KHEHAR, C. J. (Oral) 1. The following questions of law arise for consideration in the instant Appeal: "Whether the Hon'ble ITAT was legally justified correct in allowing the amount received on account of reimbursement of mobilization charges by the NRC in respect of the transpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, provisions of section 5 and section 9 are not attracted. Section 4 is a charging section and section 5 contains the scope of total income, which provides that subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income as described under this section and section 9 provides the incomes deemed to accrue or arise in India in the contingencies described under this section. Therefore, section 5 and section 9 both are aimed at the income for the taxability under section 4 of the Act, while section 44BB does not take into account the income for calculating the aggregate amount to calculate 10 per cent profits and gains. Profits and gains is a type of income to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount specified in sub-section (2) of section 44BB as deemed profits and gains of such non-resident assessee who is engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils. The amount 3 referred in sub-section (2) of section 44BB are the amounts (a) paid to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India, (b) payable to the assessee (whether in or out of India) on account of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 42 or section 44D or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. (2) The amounts referred to in sub-section (1) shall be the following, namely:- (a) 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, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India; and (b) the amount received or deemed to be received in India by or on behalf of the assessee on account of the provision of services and facilities in connection with, or supply of pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India." It is the submission of the learned counsel for the appellants, that the amount in the instant case squarely falls in the amount expressed in clause (b) of the aforesaid judgment, i.e. an amount payable to the assessee in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of mineral oils in India, inasmuch as, the reimbursed amount was expressly on account of the supply of plant and machinery to be used in the prospecting or extraction or production of mineral oils in India. 4. We have examined the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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