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2017 (7) TMI 731 - AT - Income TaxPE in India - for how many days the assessee was engaged in the activity of exploration, exploitation or extraction of mineral oils in India? - stay in India - Held that:- An enterprise shall be deemed to have a permanent establishment in contracting state to carry on business through that permanent establishment if it provides services or facilities in that state for a period of more than 183 days in connection with the exploration, exploitation or extraction of minerals oils in that state. In the present case we note that the drilling rig of the assessee was brought into India on 26.04.2010. Thereafter as evident from the minutes of meeting held on 27.04.2010 between GSPC as mentioned in page 4 of the A.O’s order the Rig was undergoing necessary fabrication, upgradation & positioning to meet GSPC requirements and as proposed in their bid. For providing the service and facility in this case it was required to properly position the rig, fabricate and modify of the same as per the needs of the GSPC. By no stretch of imagination it can be said that the Rig was ready for use. It was only after the aforesaid fabrication, upgradation and enabling operations were carried out that further drilling operations were commenced from 3.11.2010 and continued till the end of the financial year. Thus, the assessee was having in PE in India to carry on business from the day when it commenced in India operation to fabricate, to upgrade to prepare, to position and to enable the Rig to perform the drilling activity. Hence assessee had deployed the rig in connection with the exploration activity from 26.04.2010. Hence, since service and the operation continued till the end of the financial year, the number of days of the deployment of rig was more than 183 days. Hence assessee had a PE in India. - Decided against assessee.
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