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2016 (5) TMI 258 - AT - Income TaxProfessional charges received - whether were not in the nature of fees for technical services as defined in sec. 9(1 )(vii) - invoking the provisions of sec 44DA r.w.s. 115 - Held that:- Income from the services rendered in connection with providing drilling rigs/drilling services to ‘Cairn’ in India are in the nature of services and facilities in connection with, or supplying plant and machinery on hire which are used in prospecting for extraction or production of mineral oil and the provisions of section 44BB of the Act would apply and the income would be taxable accordingly and not as fee for technical services either under section 44DA or section 115A of the Act - Decided in favour of assessee Interest charged under section 234B - Held that:- The clause of the contract agreement contained provision for production of lower or no withholding tax certificate by the assessee to the ‘Cairn’, however, the Revenue has not produced any evidences that any such certificate of lower or no withholding tax was ever submitted by the assessee to the ‘Cairn’, and therefore it cannot be said that the assessee played any role in lower or no withholding tax by the payer. Thus, respectfully following the judgment of the Hon’ble High Court in the case of GE Packaged Power Inc,[2015 (1) TMI 1168 - DELHI HIGH COURT] we are of the opinion that the assessee cannot be held responsible for lower or no withholding tax and consequent responsibility of interest under section 234B of the Act for non-payment of advance tax on its income. Accordingly, we uphold the finding of the learned Commissioner of Income-tax(Appeals) on the issue and the ground of the Revenue is dismissed. - Decided in favour of assessee Considering the entire mobilization charges for taxing under section 44BB - Held that:- The entire payment of mobilization charges in question was paid for the purpose of execution of the contract between the assessee and the ‘Cairn’ and therefore the entire sum was liable for taxed under section 44BB of the Act. Accordingly, we uphold the finding of the learned Commissioner of Incometax( Appeals) on the issue in dispute and the ground of the assessee is dismissed. - Decided in favour of revenue
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