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2012 (8) TMI 280 - AAR - Income TaxIndia UAE DTAA - contract with the UAE Company for seismic data acquisition on Cauvery and Krishna Godavari basin - can the income derived by the applicant be construed in the nature of "Fees for technical services‟ u/s 9(1)(vii) - Held that:- The applicant is engaged in the business of providing services or facilities in connection with the prospecting for oil but clearly the applicant cannot be said to have undertaken a mining or like project or the work of prospecting for extraction or production of mineral oil, therefore, satisfied that the exception contained in Explanation (2) to section 9(1)(vii) of the Act is not attracted in the case of the applicant -Since the consideration received by the applicant is for rendering technical or consultancy services, on question no. 1, it has to be ruled that the income derived by the applicant has to be construed to be in the nature of "fees for technical services‟ in terms of section 9(1)(vii). Whether the consideration received by the applicant has to be deemed to be "royalty‟ under section 9(1)(vi) - as the Revenue itself in its objection suggested that the consideration received would be fees for technical services to be dealt with as such in this state it no ruling on this question required. Whether the income derived by the applicant from the contract from UAE company is liable to be assessed under section 44BB(1) - Held that:- The income derived by the applicant is from a UAE company and not from the Government or an Indian concern - On the wording of section 44D, 44DA, or 115A the income cannot be brought within their purview, because they only speak of income by way of fees for technical services received from Government or an Indian concern, thus contention of the Revenue that the income derived by the applicant is independently assessable under section 115A or 44DA has to be rejected - as income derived by the applicant is from an activity of mineral oils and from a foreign company, the applicant would be entitled to claim to be assessed under section 44BB(1).
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