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2011 (8) TMI 370 - AT - Income TaxApplicability of section 115A(1)(b)(BB) and Section 9(1)(vii) - Business income or fee for technical services - services in relation to construction of pipeline project - PE in India - composite contract - Held that:- even if extra responsibility of the assessee is there as per the consortium agreement and as per the terms of contract awarded by GAIL to the consortium, the assessee has not done those extra activities and the consideration received by the assessee is as per the co operation agreement for the activities provided in the co operation agreement and having accepted by the Assessing Officer the amount of consideration received by the assessee at 3 per cent of gross receipts of the consortium, it has to be accepted that the same is for providing FTS as per the co operation agreement. No case has been made out by the Assessing Officer to show that section 115A and section 9(1)(vii) are not applicable in the present case as per which the income of the assessee with regard to PDPL project is liable to tax @ 10 per cent as has been claimed by the assessee. - AO directed to apply the provisions of sub-clause BB of clause (b) of sub-section (1) of section 115A along with section 9(1)(vii) of the Act.
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