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2015 (4) TMI 557 - AT - Income TaxFees for technical services - Assessment under section 144C/143(3) - income arising from services rendered by the appellant in connection with exploration/prospecting/extraction of mineral oil - CIT(A) Held that the provision of well testing equipments and services was not in the nature of Fee for Technical Services (FTS) squarely covered under section 9(1 )(vii) and holding that the income of the assessee was taxable under the provisions of sec 44BB - Held that:- The word 'services' in section 44BB include both technical and non-technical services. It was held that the proviso to section 44BB (1) will be pressed into service in case of the assessee whose receipts being of the nature of FTS and the income is required to be computed in accordance with section 44D or 44DA or section 115A or section 293. It is not out of place to mention that had these not being technical services, the proviso will not be pressed for the exclusion. FTS effectively connected with the permanent establishment is taxable under the Section 44DA and not under section 44BB, however, this would be applicable from assessment year 2011-12 and for the assessment years 2004-05 to 2010-11 the FTS also would be taxable under section 44BB (1). See Baker Hughes Asia Pacific Ltd., C/o Nangia & Co., and others Versus Addl. Director of Income-tax, International Taxation, Dehradun [2014 (7) TMI 601 - ITAT DELHI]. We uphold the order of the Ld. CIT(A) for the assessment year 2010-11 dated 05.03.2013. Hence we dismiss the appeal of the Revenue for assessment year 2010-11. - decided against revenue.
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