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2018 (4) TMI 927 - AT - Income TaxRevenues earned on account of provision of geophysical and geological services for processing of 2D/3D seismic data - apply the deemed profit rate of 10% u/s 44BB or to bring the revenue to tax u/s 115A of the Act - section 44BB applicability - Held that:- In the facts of the present case it has not been disputed by authorities below that activities carried on by assessee are not directly associated with prospecting, extraction or production of mineral oils. On a combined reading of sections 44 BB, 44DA and 115 A of the Act, we are of the considered view that all these sections relating to royalty/FTS operate in different fields. Where assessee is imparting services which could be a simple royalty or FTS then the same would be taxed under section 9(1)(vi)/(vii) read with 115A, but where assessee is imparting any services in relation to exploration of mineral oil then the royalties/FTS would be taxable under section 44 BB of the Act. As section 44 BB are specific provisions in relation to specific services, it would prevail over the other provisions dealing with royalties/FTS. From the list of services considered by Hon’ble Supreme Court while deciding the issue in the case of ONGC vs. CIT (2005 (12) TMI 46 - UTTARANCHAL HIGH COURT) the activity carried on would indicate that pith and substance of each of the contracts/agreements is connected with prospecting, extraction or production of mineral oil. And the assessee before us is also rendering services which is connected with similar activities of prospecting, extraction or production of mineral oil. No hesitation in holding that the payments received by assessee have to be assessed under the specific provision of section 44 BB and not 115 A of the Act. - Decided against revenue
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