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TMI Blog2015 (2) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... has offered the revenues from such leasing of vessels aggregating to Rs. 13,41,19,839/- to be taxed u/s 44BB of the IT Act. In the draft assessment order dated 18,12.2009, the Assessing Officer, however, took the view that the equipment rental received by the assessee are in the nature of 'Royalty" and are taxable u/s 9(1)(vi) of the IT Act. For this purpose, the taxable profit of the assessee has been estimated at deemed profit rate of 25% of gross revenue. 3. The DRP by way of its directions dated 27.09.2010 issued the following directions- (a) The DRP concluded that in terms of the provisions of section 44BB of the Act the receipt of only such non-resident assessee who supplied plant and machinery on hire used for the purposes of prospecting, extraction or production of mineral oils shall be eligible for the benefit under section 44BBof the Act. The DRP held that the term 'used or to be used' are used in context of plant and machinery and not to specify the person who shall use it i.e. the term use or to be used is in conjunction with the term 'prospecting, extraction or production of mineral oils. This means that the plant and machinery can be used when it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yments would be charged to PE only and would be deemed to have been included under section 44BB of the Act. As such royalty receipts were taxable in India. Here the apparent contradiction in the order of the DRP must be pointed out. Here the DRP assumed that CGG is taxable under section 44BB of the Act and hence by the implied logic concludes that the expenses of royalty paid by CGG to the assessee have been borne by the PE of CGG in India. This assumption was drawn to fit the taxability of the assessee under Article 13(7) of the DTAA since one the of the conditions prescribed for taxability of the assessee in India is the bearing of the expenses on account of royalty payments to the assessee by the said PE in India, (e) The royalty payments are being made by the non-residents from the income which has been offered to tax u/s 44BB in India. Thus, the payer is deemed to have a PE in India and as such royalty has been charged to such PE as it is being taxed at a deemed profit rate of 10%, which, by deeming fiction, includes all expenses of the payer in relation to the PE. Since the 'Plant and Machinery' is to be utilized by the PE of the payer in India, there is no doubt tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile issuing the assessment order has not followed the well settled 'judicial principle of consistency' which holds that unless there is a material change in facts and circumstances of the case, the Revenue authority will not depart from its previous decisions at their own sweet will. 4. Based on the facts and circumstances of the case, the Hon'ble DRP has erred in law and in facts in holding that the receipts of the Appellant are taxable as "royalty" under Article 13 ofI ndia - France DTAA at the rate of 10% on gross basis. While doing so, the Hon'ble DRP has disregarded the beneficial provision of section 44 BB of the Act wherein gross receipts are taxed at deemed profit rate of 10% thereby effective tax rate comes to 4.223%. 6. Apropos ground Nos.1, 2 & 3 is in respect to applicability of provision of Section 44BB of the Act vis-a-vis section 9(i)(vi) and Article 13 of the DTAA on the facts and circumstances of the case. 7. The DRP in this regard has held as under:- "On careful perusal of the provisions of section 44BB (1), it would be obvious that for being eligible for beneficial provisions of this section, the following conditions must be fulfilled: a. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axing statue, if the language used is clear and unambiguous. However, when such interpretation results in absurdity, the courts can resort to different methods of interpretation so as not to provision absurd or redundant. In the issue before us, it is amply clear that the legislature never intended to include the receipts of sub-hiring under purview of Section 44BB, otherwise the clause 'in connection with' would have also been extended to be used for the activity of supplying plant and machinery on hire as well. The statue is clear that the terms 'used or to be used' are meant for the hirer only. There is no scope for extending the provisions for the benefit of sub-hirer/ sub-lessee or others in the chain. In this regard, it would also be appropriate to refer to the provisions of clause (iva) of Explanation 2 to section 9(1)(vi), which are reproduced as under:- "(iva) the use or right to use any industrial, commercial or scientific equipment but not including the amounts referred to in section 44BB;]" From the above, it is clear that if an amount of the type referred to in Sec 9(1)(vi) is not included in amounts referred in Sec 44BB, then such amount would be tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Article 13(7) or b. When the payment is made by one non-resident to another non-resident, royalty would arise only if: - the non-resident has a PE in India. The liability to pay royalty is incurred 'in connection with' such PE or fixed base; - Royalty is 'borne' by such PE or fixed base. In the present case, the royalty payments are being made by the non-resident from the income which has been offered to tax u/s 44BB of the Income-tax Act, 1961 in India. Thus, the payer is deemed to have a PE in India, and such royalty has been charged to such PE as it is being taxed at a deemed profit rate of 10% which, by deeming fiction, includes all expenses of the payer in relation to the PE. Since the 'Plant & Machinery' is to be utl9ized by the PE of the payer in India, there is no doubt that the payments would be charged to PE only and would be deemed to have been included u/s 44BB. As such, the royalty receipts of the sub-lessor are taxable in India. Generally, the rate of taxation of royalty is concessional as compared to the normal rate of taxation applicable to foreign companies. When there is no DTAA, domestic law provides for taxation u/s 9(1)(vi) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvironment. Further, it shall as a minimum apply the instructions of the OGP forum for marine seismic operations (OGP Forum Guidelines relating to Marine Seismic Operations). h. The owner is liable to provide minimum training required for the vessel's crew. The training standards must, as a minimum, meet OMI or IAGC standards. 9. From the aforesaid facts according to the ld counsel, it is evident that the assessee had a place of business in India and hence a PE of the assessee came into existence. However, since in terms of section 90 of the Act, the provisions of the Act would apply to the assessee only so far as they are more beneficial to the assessee. In the present case since the assessee had provided the vessels which were used for the purposes of conducting seismic surveys by CGG, the revenues received by it were offered to tax as per the provisions of section 44BB of the Act on a deemed profit of 10%. 10. Ld counsel further contended that the first issue that has arisen for determination is whether the benefit of section 44BB of the Act is available to a sub-contractor since both the AO as well as the DRP have held that it was not the intention of the legislature to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of "Exploration Operations" has been defined to mean operations conducted in the Contract area pursuant to this contract in searching for petroleum and shall include but not limited to aerial, geological, geophysical, geochemical, palaeontological,palynological, topograhical and siesmic surveys, analysis and studies and their interpretation. And the Petroleum Tax Guide (at page 191 of the paper book) while defining "exploration operations" (at page 195) also includes siesmic surveys. 13. The above interpretation of the provisions of section 44BB i.e. that the benefit does extend to assessee supplying plant and machinery which is used or to be used for the purposes of exploration, extraction or production of mineral oils is duly supported by the following judgments. 1. Mcdermot International v. DCIT (49ITD590) 2. Microperi SPA Milani v. DCIT (82 ITD 369) (Bombay) 3. WavefieldInseis ASA (320 ITR 290)(AAR) 4. Bourbon Offshore Asia (P) Ltd. (337 ITR 122) (AAR) 5. Siem Offshore Inc (337 ITR 207) (AAR) 6. Lloyd Helicopters Pty Ltd. (249 ITR 162)(AAR) 14. Thus, according to Shri Deepak Chopra from a perusal of the above judicial precedence, it is evident that no distinction has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he transaction is between two non-residents. 18. Ld counsel cited the decision of the Delhi High Court in the case of DIT v. OHM Ltd (212 Taxman 440/352 ITR 406) to highlight the legal maxim 'generallia specialibus non derogant' and contended that in any case the provisions of section 44BB of the Act assume precedence over the general provisions of section 44D and 44DA of the Act and hence would not be applicable. 19. According to the ld counsel, even otherwise, the proviso to section 44BB of the Act in any case does not apply to the assessee since the revenues received by it were from another non-resident company and hence the provisions of section 44D and 44DA of the Act have no applicability on such revenues. Similarly the provisions of section 115A also do not apply on the facts of the present case. Therefore the ld counsel prays that the impugned order be set-aside and earlier order accepting the stand of the assessee may be upheld for consistency. In next part of applicability of interest under section 234B the ld. Counsel submitted that this issue now stands covered in favour of the assessee by the following decision of the Delhi and Uttarakhan High Court- ♦ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 20) ♦ Agreement was drafted in Paris on March 1, 1996 (page 23) ♦ The clients of CGG are the sole, exclusive owners of these results (page 24). Indicating that though the prospection services are performed by CGG the results belong to clients. ♦ The agreement was endorsed to CGG Marine, As on July 1, 1996 (pages 31 and 32) ♦ By endorsement No.6 the time charter contract dated March 1, 1996 was extended for a period of two years from May 20, 2004. The Charterer was CGG Marine SAS, France. 23. The ld CIT DR submitted that time Charter Party Agreement in regard to vessel "Harmattan" is available on pages 58 to 78. The vessel was handed over to CGG on 7th May 1996 in Abidjan, IVORY COAST. The Vessel was endorsed to CGG. Marine SAS on July 1, 1996. Vide endorsement No. 6; the agreement was extended for a period of one year from January 25, 2004 (page 94). The Charterer is C.G.G. Marine SAS, France. 24. The ld CIT DR Shri Sanjeev Sharma took our attention to Paragraph 1 of the written submission of the assessee, which states that vessels have been provided to M/s Cornpanigne Generale De Geophysique (CGG). Page 1 of PB which shows that CGG Services has ente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. In this case according to the ld CIT DR, the assessee is not covered by the exclusion provision as it is not deriving income from operation of ships in international traffic, as the vessels for which payments are being received remain in the Indian Territory. 28. According to the ld CIT DR, the payments made by a non-resident to another non-resident are also covered under the source rule prescribed in paragraph 7 of Article 13 of the treaty. The ld DR contended that assessee in its written submission (page 7) has reiterated that it had a place of business in India and hence a PE of the assessee came into existence. Otherwise also, the payments to the assessee arose in India as per provisions of paragraph 7 of Article 13 which reads as below: Royalties and fees for technical services shall be deemed to arise in a Contracting State where the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the royalties or fees for technical services, whether he is a resident of a Contracting State or not has in a Contracting State a permanent establishment or a fixed base in connection with which the obligatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the charterers are not engaged in the business of prospecting, extraction or production of mineral oils. These vessels are used by them during the course of executing their agreements with ONGC, who is engaged in the business of exploration and extraction of mineral oils. According to him, the Revenue is of the view that the scope of provisions cannot be extended to cases wherein simple hiring of vessels is involved and not directly used in the business as prescribed in the section. So, the ld DR contended that the benefit cannot be extended to the persons hiring the vessels to other persons who are not engaged in the business of exploration, extraction or production of mineral oils. The ld DR brought out attention to paragraph 5.1.1 (pages 2 to 7 of the DRP order)and stated that reasoning of decision is given on pages 5 and 6 of the DRP order. DRP has stated that, in regard to activity of supplying plant and machinery on hire the terms "in connection with" are not used indicating that the terms "used or to be used" are meant for hirer only when the charterers are using the same in their business of business of prospecting, extraction and production of mineral oil. 33. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that section presupposes that an assessment has been made, and that as I understand him, the words "in connection with" mean "consequent upon." I do not think that is the correct construction to be put upon these words. One of the very generally accepted meanings of "connection" is "relation" between things one of which is bound up with or involved in another"; or again "having to do with". The words include matters occurring prior to as well as subsequent to or consequent upon so long as they are related to the principal thing. The phrase "having to do with" perhaps gives as good a suggestion of the meaning as could be had? I think section 66 is sufficient to oust the jurisdiction of this Court to deal with a decision on which an assessment is subsequently made." 35. In that case, the court was with interpreting section 66 of the Income War Tax Act which reads as under: "66. Subject to the provisions of this Act, the Exchequer Court shall have exclusive jurisdiction to hear and determine all questions that may arise in connection with any assessment made under this Act." 6.3. In V.A. Vasumathi v. CIT 123 ITR 94 the Kerala High Court observed while interpreting Section 48(1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xploration, etc., of mineral oils. It provides for presumptive taxation of income. Scope of Section 44BB was explained in CBDT Circular No. 495 dated 22.02.1987. This Circular mentioned that, "a number of complications are involved in the computation of taxable income in the business of providing services and facilities in connection with or supply of plant or machinery on hire, used or to be used in the exploration or exploitation of mineral oils. With a view of simplifying the provisions, Finance Act, 1987, has inserted a new section." In the case of assessee, no complications are involved in the computation of income because the payments are of the nature of royalty and taxable on gross basis both under the provisions of tax treaty and the Act and therefore the ld DR does not want us to interfere in the reasoned order of the authorities below. 40. The ld counsel Shri Deepak Chopra in his rejoinder to the submission of the ld CIT DR submitted that there is no dispute that seismic survey activities form part of exploration activity and as such are eligible for the benefit under section 44BB the Act and the revenue is in agreement with the assessee in regard to the same. The main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specting for, or extraction or production of, mineral oils and as much mandates that such person would be taxed on a deemed income basis. A plain reading of the provision also suggests that the legislature had not imposed the condition of "used" or "to be used" on such person. The term "use" or "used" has been qualified in respect of prospection, extraction and production of mineral oils. The provision itself envisages the possibility that the person who is letting the equipment is engaged in that business only viz. supplying plant and machinery. However, the only condition that is manifest in the said provision is that such plant and machinery should have been used in the prospecting, extraction or production of mineral oils. And the admitted facts in the present case are that CGG (the hirer) has used the equipment in exploration, prospection and production of mineral oils. 43. It was also stated by the ld counsel that the provision no where lays down that charterers should be engaged directly in the business of prospecting, extraction or production of mineral oils. According to the ld AR the conclusions of the Ld.CIT DR are also fallacious on account of the reason that the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doing the exploration activity himself. 45. In respect to the contention of the ldCIT DR that CGG Services is itself not engaged in the business of prospecting, exploration of or extraction of mineral oils. And to the contention of the ldCIT DR that it was ONGC and not customer of the assessee that was engaged in the business of prospecting, exploration of or extraction of mineral oils. The ld counsel submits that the CGG Services had entered into contracts with ONGC for providing personnel and equipment, planning and executing acquisition of 3D seismic data and basic 3D seismic data processing. The ld. Counsel submitted that to reduce the risks involved in exploratory drilling, seismic surveys are conducted to gather data to understand the size and location of oil fields (or squeeze more oil out of existing reservoirs). Seismic surveys can paint a picture of the subsurface in order to better target the oil and gas reserves. This results in fewer dry holes and even avoids drilling if seismic data suggests a low potential for oil or gas. Accordingly, for any oil and gas exploration activity, seismic survey is the first step and perhaps the most critical part of the activity. Hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any person on his behalf on account of carriage of passengers, livestock, mail or goods shipped at any port in India; and clause (ii) extends to the amount received or deemed to be received in India by or on behalf of the assessee on account of the carriage of passengers, livestock, mail or goods shipped at any port in India. However, section 172 deals with Profits of non-residents from occasional shipping business. And was also a special provision for the levy and recovery of tax in the case of any ship, belonging to or chartered by a non-resident, which carries passengers, livestock, mail or goods shipped at a port in India. Under this provision an ad-hoc assessment is made before the ship is allowed to leave the Indian port unless the non-resident shipping concern has an agent in India from whom the tax would be recoverable. Thus, both these provisions i.e. sec. 44B and sec. 172 of the Act applies to non-residents engaged in the business of shipping where there is carriage of passengers, livestock etc. Section 172 is an alternative mechanism, which permitted that instead of making an ad-hoc assessment on the non-resident before the ship were to leave the port in India; the agent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (3) Notwithstanding anything contained in sub-section (1), an assess may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the AO shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of sec. 143 and determine the sum payable by, or refundable to, the assessee. Explanation: For the purposes of this section,- (i) "Plant" includes ships, aircrafts, vehicles, drilling units, scientific apparatus and equipment, used for the purposes of the said business; (ii) "Mineral oil" includes petroleum and natural gas". 50. An analysis of the said section reveals that it (sec. 44BB) is a special provision in respect to an assessee who is a non-resident for computing profits and gain in connection with the business of exploration, etc of mineral oils. The charging provisions is contained in sub-section (1) of Section 44BB, the relevant part of which provides that where an assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia or whether the payment made by the charterers to the owner of the ship was for the use and hire of such ship. The Apex Court made the following observation in respect to ascertain the intention of parties to an agreement and then went on to analysis the agreement in question in that case and observed that "it is true that one cannot place over-reliance on the form which the parties give to their agreement or on the label which they attach to the payment due from one to the other. One must have regard to the substance of the matter and, if necessary, tear the veil in order to see whether the true character of a payment is something other than what, by a clever device of drafting, it is made to appear. But we see no reason to hold that the real intention of the parties was something different from what the words used by them convey in their accepted sense. The charter-party was drawn in a standard form approved by the "New York Produce Exchange" and there is no warrant for supposing that though the payment which the charterers bound themselves to make to the owners of the ship was on account of the carriage of goods, the parties described it as being payable for the use and hire o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naturally susceptible. [(The North Eastern Railway Company v. L. Hastings) (1900 AC 260)]. 55. This position is also supported by the decision of the Supreme Court in the case of CIT v. Hoogly Mills (287 ITR 333). The same view was expressed by the Supreme Court in the case of Ishikawa-Harima Heavy Industries Ltd. v. DIT (288 ITR 408) where the Court observed as under- In construing a contract, the terms and conditions thereof are to be read as a whole. A contract must be construed keeping in view the intention of the parties. No doubt, the applicability of the tax laws would depend upon the nature of the contract, but the same should not be construed keeping in view the taxing provisions, 56. In ottoman Bank of Nicosia V Ohanes Chakarian. AIR 1938 PC 26, Lord Wright made these weighty observation: "that if the contract is clear and unambiguous, its true effect cannot be changed merely by the course of conduct adopted by the parties in acting under it." 57. Guided by the said principles, we now propose to examine the various clauses of the Charter agreement between the Appellant and the Charterer. The Appellant had provided two seismic survey vessels namely - CGG Fohn and CGG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des as under- Under the Secrecy clause hereunder the Owners (i.e. the Appellant), their agents and employees accept: to treat as confidential and not to divulge any information that might be transmitted to us and generally anything that they might learn on the methods, techniques and equipment used by CGG whether these methods, techniques, and equipment be their own or used with the agreement of third parties; to treat as confidential and not divulge anything they might learn about the results of geophysical prospection work, whatever the date on which work was performed and whatever the methods and resources used. They recognise that the clients of CGG (i.e. ONGC) are the sole, exclusive owners of these results... On page 27 of the paper book (Appendix 2) in the technical specifications of the Vessel in clause 10 separate Spaces have been provided on the vessel for Seismic survey part of the vessel. Similarly in Appendix 3 (on page 29 of paper book). Survey Lab details on the vessel have been provided. Similar terms are contained in the time charter agreement in respect of the Vessel HARMATTAN. 58. All the above terms go to evidence that the above agreements were not time c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohandas & Others (supra) and so we hold that the agreement between the parties was not a time charter simplicitor and so the Apex Court decision in Gosalia Shipping P. Ltd. (113 ITR 307) (SC) is of no help to the Revenue, though the term time-charter has been used in the said agreement. 59. Coming back to the main issue i.e., whether the assessee who lends its plant to a hirer who is having a contract with ONGC for prospecting, exploration or production of mineral oil, we may refer to certain case laws, and reproduce its relevant part. (i). WavefiledInseis ASA ( 320 ITR 290) (AAR) "The second limb of s. 44BB is clearly attracted in the instant case. There is no doubt that PF is engaged, inter alia, in the business of letting out the ships/vessels on hire. There is also no doubt that the vessel has been taken on hire by the applicant for the purpose of enabling the applicant to carry on the seismic survey and data acquisition operations which are essential for prospecting of mineral oil. The requirement of sub-sect(1) of S. 44BB is that the vessel/ship must be used in the prospecting for or extraction of mineral oils. A chase vessel provided by PF is inextricably linked to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resupply and chase services for seismic operations as instructed by charter, always within vessel's safe capacities and capabilities". This stipulation again does not run counter to a hiring contract. The purposes for which the hiring vessel can be utilized are only specified there. Though the applicant has stated that the chase vessel "constantly monitors the activities of all the equipments used for seismic data acquisition ", it is not stated by whom such monitoring is done. Is it by the crew of the vessel or by the technical personnel of the applicant on board of the vessel? The latter situation seems to be more probable. The crew may be engaged in the normal operations connected with navigation and some support services. On the whole, it appears that the transaction falls more appropriately under the second limb of sub-so (1) of S. 4488 rather than the first limb. Therefore the income derived by PF ought to be computed in accordance with provisions of s. 44BB. As per s. 44BB r/w Part II of the First Schedule to the IT Act, the effective rate at which the tax has to be withheld from the payments made by the applicant to PF would be 4.223 per cent. The consideration for serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant in terms of the contract as involving the providing of any technical service. Obviously, the applicant is engaged in the business of providing services or facilities in connection with extraction or production of oil, a mining activity. It could also be said to be supplying plant and machinery for hire to be used in the prospecting of oil. Thus, the income derived by the applicant from the activities undertaken by it under the consortium agreement as recognized by ONGC the explorer, takes it out of s. 9(1)(vii) and brings that income within s. 4488. On the terms of the transaction in question, it is clear that what is paid to the applicant is not fee for technical services and consequently the proviso to s. 4488 is not attracted. The services being provided by the applicant are not technical services. Hence, the applicant can claim to be assessed in terms of s. 4488 especially since there is no case the':ONGC is not involved in prospecting, exploration and extraction of oil and the services being provided by the applicant are services in connection with that activity. (iv) Lloyd Helicopters Pty Ltd. (249 ITR 162 )(AAR) It is s. 44BB and not s. 44BBA which is more approp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of a totally different nature and there is no justification to read into the transaction an arrangement which can fit into the language of s. 44BBA. For the above reasons, it is difficult to say that the consideration or any part thereof paid to the applicant by C is on account of the types of carriage in the section. Reading the two sub-sections of s. 44BBA together, it can be said that the section is applicable-and can indeed be applied-only if it is possible to say that they represent the categories of receipts mentioned in the section and with reference to which the "presumptive" rate of profit specified in the section should be applied. On the other hand, the consideration in the present case can definitely be said to relate to only the provision of services and facilities and hire of plant and machinery in relation to an oil business carried on by C. Therefore, the present case is one governed by s. 44BB rather than by s. 44BBA. The parties considered it expedient to agree that C should be able to command the helicopter and allied services of the applicant as and when required; it was not sufficient for them merely to enter into a contract agreeing to pay for fare and fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said provision so as to disentitle a sub-contractor from invoking the said provision. Accordingly we do not find any fault in the claim of the assessee that revenues received under the charter agreements with CGG for providing two seismic survey vessels are in consideration with prospecting for, extractions or production of mineral oils and therefore taxable u/s 44BB of the Act. 61. It is also a settled law that the court cannot add words to statute or read words into it which are not there vide UOI v. Delhi Nandan Aggarwal [1962] (1)SCC 323. The similar view has been reiterated recently in CIT v. Tara Agenence [2007] 292 ITR 444 (SC). This being so we are of the view there is no restriction as suggested by the ld DR cannot be read into section 44BB, to exclude the assessee from it. 62. Now when we look into the facts of the case in the light of the discussion above we find that assessee is in the business of supplying plant/ ship on hire which is being used for prospecting for or extraction or production of mineral oils. Therefore, on the whole, it appears that the transaction falls under the second limb of sub-section (1) of sec. 44BB. The intention of the Parliament to e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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