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2016 (7) TMI 826 - AT - Income TaxApplication of deemed profit rate of 10% u/s 44BB - revenues earned from a non-resident company on account of provision of technical personnel for executing contracts with M/s. ONGC - DRP after considering the relevant decisions held that section 44BB of the Act being a more specific provision shall prevail over the general provisions of the Act and that the services rendered by the Subcontractor at the off shore rigs of a contractor is part and parcel of activities for extraction etc of mineral oils and would be covered u/s 44BB Held that:- We respectfully note that in the case of ONGC [2015 (7) TMI 91 - SUPREME COURT ], speaking for the Hon’ble Apex Court, their Lordships categorically held that payments for providing various services in connection with prospecting, extraction or production of mineral oil would be assessed u/s 44AB and not u/s 44D of the Act. On the basis of aforesaid discussion, we are inclined to hold that the issue is squarely covered in favour of the assessee and the DRP was not justified and correct in directing the AO to assess income of the assessee from non-resident company on account of provision of technical person for executing contract with ONGC shall be taxed applying due profit rate of 10% u/s 44BB of the Act. - Decided against revenue.
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