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TMI Blog2018 (6) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... s: "Grounds of Appeal 1. Whether on the facts and circumstances of the case, the Hon'ble Dispute Resolution Panel ('DRP') has erred in directing the Assessing Officer to apply the deemed profit rate of 10% u/s 44BB of the Income Tax Act, 1961 (The Act') on the revenues earned by the assessee from a non-resident company, M/s CGG Marine ('CGG'), on account of provision of seismic survey vessels on hire for executing contracts with M/s ONGC. 2. Whether on the facts and in the circumstances of the case, the Hon'ble DRP has erred in holding that the amount received by the assessee from M/s CGG, a French Company, on account of the provision of seismic survey vessels under global time charter contracts was not in the nature of Royalty as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom second-leg are in respect of contracts which are entered into with companies not directly engaged in Oil Production and exploration and, therefore, are liable to tax u/s 9( 1 )(vi)/9( 1)(vii) read with section 44DA and not section 44BB of the IT Act, 1961. 6. Whether on the facts and circumstances of the case the Hon'ble DRP has erred in its interpretation of the legislative intent behind the scheme of taxation envisaged in 9(l)(vi) read with sections 44DA and 44BB , ignoring the decisions in the cases of M/s Rolls Royce Pvt. Ltd [2007-T1I-03-HC-UKHAND-INTL] and M/s ONGC As Agent of M/s Foramer France [(2008) 299 ITR 438 Uttarakhand] 7. Whether on the facts and circumstances of the case, the Hon'ble DRP has erred in ignoring the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s earned by a non-resident from Government or an Indian entity and where an income is received by a non-resident from another nonresident, the provisions of section 44DA/115A do not apply. 11. Whether on the facts and circumstances of the case, the Hon'ble DRP has erred in not appreciating that proviso to section 44BB is not inserted 'per majoremcautelam' but explains and clarifies the main provision as the terms services or facilities used therein are not defined and the two terms used are too general in nature and thus once the payments take the character of Royalty u/s 9(l)(vi), they go outside the purview of section 44BB and have to be taxed as Royalty at rates prescribed for Royalty income under the Act and /or DTAA. 12. Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d profit rate of 10% u/s.44BB of the Act. The Assessing Officer has denied the applicability of section 44BB in the draft assessment order on the ground that assessee had supplied the vessel to M/s. CGG Marine which was not a party to the production sharing contract with ONGC, instead he treated the entire receipt as royalty. Learned DRP held that the assessee is providing services or facilities in connection with or supplying plant and machinery on hire use or to be used in the prospecting for, or extraction or production of, mineral oils. There is no provision u/s.44BB to support the Assessing Officer's interpretation of the so called 'second leg contract' so as to deny the applicability of the section to the assessee. Only requirement of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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