TMI Blog2018 (6) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... on 44BB would be applicable. Now this issue stands settled in the case of ONGC vs. CIT [2017 (10) TMI 322 - SUPREME COURT OF INDIA], wherein after analyzing the various kinds of contracts by different foreign companies with whom ONGC executed various contracts for services to be rendered in connection with prospecting, extraction or production of mineral oil by ONGC and after detail analysis and discussion, held that any activity relating to exploration, prospecting, extraction, production of mineral oil would be covered u/s.44BB. They have also taken note into account various kinds of works which has been set out in detail in the judgment. Here also the supplying of vessels for the said purposes is inextricably connected with the prosp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the nature of Royalty as defined u/s 9(1)(vi) of the Act and was not taxable under the provisions of sec 44DA r.w.s. 115A of the Act. 3. Whether on the facts and in the circumstances of the case, the Hon ble DRP has erred in holding that the revenues earned by the assessee on account of provision of seismic vessels on hire to a non-resident company were in connection with prospecting etc of mineral oil and hence eligible for treatment u/s 44BB of the Act, without adjudicating the aspect of eligibility in terms of second l imb of the exclusionary proviso (Explanation to section 9(l)(vii) of the I T Act, 1961) i.e. for a project undertaken by the recipient in terms of the proposition confirmed by Hon ble Delhi High Court in DIT V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Hon ble DRP has erred in ignoring the distinct scheme of taxation of Royalty Fee for Technical Services and disregarding the insertion of provisos in section 44BB/44DA/ 115A and the rationale behind the introduction of said clarificatory provisos in the Finance Bill 2010 in holding that the income of the assessee company was covered under the provisions of section 44BB. 8. Whether on the facts and in the circumstances of the case, the Hon ble DRP has erred in not appreciating that since sections 44DA/115A are special provisions for taxation of income in the nature of Royalties and FTS and if a special provision is made respecting a certain matter that matter is excluded from the general provision under the rule of Generallias ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Royalty income under the Act and /or DTAA. 12. Whether on the facts and circumstances of the case, the Hon ble DRP has erred in not appreciating the fact that proviso to section 44DA brought about by the Finance Act2011 was only clarificatory in nature and its application has to be read into the main provisions with effect from the time the main provision came into effect in view of the decision of the Hon ble Supreme Court in the case of Sedco Forex International Drilling v/s CIT. 2. At the outset, ld. counsel for the assessee submitted that this issue is squarely covered by the decision of the Tribunal in assessee s own case for the Assessment Year 2007-08 vide ITA No.5184/Del/2010 order dated 17.02.2015. Apart from that he ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny the applicability of the section to the assessee. Only requirement of the section is plant and machinery is given on hire is used or to be used in the prospecting /extraction/production of mineral oil. Thus the learned DRP upheld the applicability of Section 44BB. 5. We find that this Tribunal in assessee s own case for the Assessment Year 2007-08 has decided this issue in favour of the assessee and held that provision of Section 44BB would be applicable. Now this issue stands settled by the Hon ble Supreme Court in the case of ONGC vs. CIT (supra), wherein the Hon ble Apex Court after analyzing the various kinds of contracts by different foreign companies with whom ONGC executed various contracts for services to be rendered in connec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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