TMI Blog2005 (12) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... or the exemption as claimed on the basis of the said notification - judgments of the Income-tax Appellate Tribunal as well as of the Income-tax Commissioner (Appeals) are hereby set aside and the judgment of the assessing authority is upheld - - - - - Dated:- 15-12-2005 - Judge(s) : P. C. VERMA., J. C. S. RAWAT. JUDGMENT The judgment of the court was delivered by P.C. Verma J.-This is an income-tax appeal under section 260A of the Income-tax Act, 1961, against the judgment order dated September 28, 1999, passed by the Income-tax Appellate Tribunal (Delhi Bench "C" New Delhi) in S.T.A. No. 17 (Delhi) of 1992 (hereinafter referred to as "the Tribunal"), whereby the Tribunal has held that the assessee was not liable to surtax under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r scrutinizing the contents of contract between the foreign company and the O.N.G.C., the assessing authority recorded a finding of fact that all the contracts were service contracts. It is an admitted fact that it is not the case of the assessee even before this court that it was not a service contract and it was a works contract, i.e., association or participation in any business consisting of the prospecting for or extraction or production of mineral oils. Accordingly, the assessing authority came to the conclusion that the notification dated March 31, 1983, was not applicable in the case of the assessee and, therefore, the assessee was not exempted by virtue of the said notification. Against this order, first appeal was preferred by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated March 31, 1983, these foreign contractors of the O.N.G.C. were exempted from payment of surtax. Since the facts are the same, therefore, respectfully following the decision of the Appellate Tribunal in the assessee's own case for the assessment year 1983-84, no surtax is leviable on the assessee. These appeals are, therefore, allowed and the orders of the Commissioner of Income-tax (Appeals) are set aside." We proceed to examine the aforesaid finding in the light of the provisions of section 24AA of the Act and Notification No. G.S.R. 307(E), dated March 31, 1983 (see [1983] 142 ITR (St.) 88), and the letter of O.N.G.C. No. 0-19011/3/89/ONG/DO-l, dated August 2, 1989. Section 24AA of the Companies (Profits) Surtax Act, 1964, reads a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this section shall be laid before each House of Parliament. Explanation.-For the purpose of this section, 'mineral oil' includes petroleum and natural gas." Sub-section (2) of section 24AA of the Act refers to the companies referred in sub-section (1) of section 24AA of the Act under which the Government is empowered to exempt the companies from surtax. Clause (a) of sub-section (2) of section 24AA of the Act refers to those foreign companies with whom the Central Government has entered into agreement for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils. Clause (b) of subsection (2) of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ign companies with whom the Central Government has entered into agreements for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils; Now, therefore, in exercise of the powers conferred by section 24AA of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby provides that no surtax shall be payable by such foreign companies. Explanation. - For the purposes of this notification,- (a) 'foreign company' shall have the meaning assigned to it in clause (4) of section 80B of the Income-tax Act, 1961 (43 of 1961); (b) 'mineral oil' includes petroleum and natural gas." The e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a service contract and not a contract for the association or participation in any business relating to extraction or production of mineral oils. Even before this court it is the case of the assessee that they are doing the service with the O.N.G.C. Section 24AA of the Act itself makes a distinction between clauses (a) and (b) under section 24AA of the Act. The companies referred under section 24AA(2) (a) are those companies which entered into a work contract while the companies which are referred under section 24AA(2)(b) are those companies which entered into the contract of service. The notification dated March 31, 1983, only covers the companies which have been referred in section 24AA(2)(a) of the Act. In view of this admitted positio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
