Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 479 - AT - Income TaxRate of profit - transaction of sale of spares/supplies taken place outside India - computation of profit u/s 44BB - Under section 143(3) read with section 144C - Held that: - Supply of components is indivisible part of entire contract. - ONGC is certainly engaged in the activity of prospecting for, or extraction or production of mineral oils and any amount received by the assessee being a non-resident engaged in the business of providing services or facility in connection with, or supplying plant and machinery on hire, used or to be used in such activity shall be governed by the provisions of section 44BB. - even supply of spare parts have been treated to be assessable under the provisions of section 44BB(1) of the Act. - the assessee has accepted the application of 10 per cent net profit rate on the segment relating to supply of spares. It means that on entire payments received by the assessee from ONGC, the assessee has accepted the application of section 44B i.e., net profit rate of 10 per cent on presumptive basis. - Appeal allowed partly in favor of assessee.
|