Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1343 - ITAT DELHIAssessment of income - Revenue earned from a non-resident company on account of provision of technical personnel for executing contracts with ONGC - application of deemed profit rate of 10% u/s 44BB or u/s 44DA/115A read with section 9(1)(vii) - Held that:- The issue is re-covered in favour of the assessee by the order of the Hon’ble Supreme Court in the case of ONGC vs. CIT [2015 (7) TMI 91 - SUPREME COURT] wherein it has been held that the payments for providing various services in connection with prospecting extraction and production of oil would be assessed u/s 44BB and not u/s 44DA. Also decided in assessee's own case [2016 (7) TMI 826 - ITAT DELHI] the facts indicate that the pith and substance of each of the contracts/agreements is inextricably connected with prospecting, extraction or production of mineral oil. The dominant purpose of each of such agreement is for prospecting, extraction or production of mineral oils though there may be certain ancillary works contemplated thereunder. If that be so, we will have no hesitation in holding that the payments made by ONGC and received by the nonresident assessees or foreign companies under the said contracts is more appropriately assessable under the provisions of section 44BB and not section 44D. - Decided in favour of assessee
|