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2017 (12) TMI 183 - AT - Income TaxFees for technical services - consideration for the services under the contracts for provision of cementing services - applicability of provisions of section 44BB - Held that:- Respectfully following the decision of the Hon’ble Delhi High Court in DIT vs OHM Ltd (2012 (12) TMI 1091 - DELHI HIGH COURT), given the nature of cementing services which are inextricably linked with activities of prospecting for, extraction or production of mineral oil, the provisions of section 44BB are applicable in the instant case, being more specific than the general provisions contained in section 44DA of the Act. In light of above discussions and in the entirety of facts and circumstances of the case, we are of the considered view that consideration for the services under the contracts for provision of cementing services fall under the exclusion and doesn’t qualify as fees for technical services as per explanation to section 9(1)(vii) and in any case, the provisions of section 44BB being more specific, shall be applicable and provisions of section 44DA are not applicable in the instant case. The assessee company has therefore rightly offered its income under the subject contracts in terms of section 44BB of the Act. In the result, ground no. 2 of assessee’s appeal is allowed.
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