TMI Blog2015 (7) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... s related to the activity of prospecting for or exploration of mineral oils, which are covered under the provisions of section 44 BB of the Act. Moreover, the test of “Make Available” is not satisfied as the assessee could not derive an enduring benefit and utilize the knowledge or know how on his own in future without the aid of the service provider for carrying out identical activities. There is no transfer of technical knowledge and skill enabling the assessee to perform similar activities in future at its own. Hence, the payment cannot be taxed as fees for technical services even otherwise in the light of the proposition of law laid down in the case of “De beers India Minerals Pvt. Ltd.” [2012 (5) TMI 191 - KARNATAKA HIGH COURT]. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 44D of the Act. 4. Being aggrieved, the assessee preferred appeal before the CIT (A). The learned CIT (A) after considering the clauses of the agreement in question, examining the nature of services provided and further relying upon various case laws of higher judicial authorities held that the payment made for the work of audit or assessment of reserves of ONGC by the foreign company cannot be taxed as fees for technical services. The assessee had not been enabled to use the technical knowledge employed by the foreign company for the said work and that the benefits derived by the assessee were not enduring in nature. The learned CIT(A) further relying upon the decision of the Hon ble Karnataka High Court in the case of De Beers India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting for or exploration of mineral oils, which are covered under the provisions of section 44 BB of the Act. Moreover, the test of Make Available is not satisfied as the assessee could not derive an enduring benefit and utilize the knowledge or know how on his own in future without the aid of the service provider for carrying out identical activities. There is no transfer of technical knowledge and skill enabling the assessee to perform similar activities in future at its own. Hence, the payment cannot be taxed as fees for technical services even otherwise in the light of the proposition of law laid down by the Hon ble Karnataka High Court in the case of De beers India Minerals Pvt. Ltd. (supra). 8. We, therefore, do not find any mer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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