TMI Blog2016 (5) TMI 1586X X X X Extracts X X X X X X X X Extracts X X X X ..... ction or production of mineral oils though there may be certain ancillary works contemplated thereunder. If that be so, we will have no hesitation in holding that the payments made by ONGC and received by the non-resident assesses or foreign companies under the said contracts is more appropriately assessable under the provisions of section 44BB and not section 44D of the Act. On the basis of the said conclusion reached by us, we allow the appeals under consideration by setting aside the orders of the High Court passed in each of the cases before it and restoring the view taken by the learned Appellate Commissioner as affirmed by the learned Tribunal. Appeal of revenue dismissed. - ITA Nos. 1596, 1597/Del/2012, ITA No. 1598/Del/2012 & ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2011 to the Income Tax Officer (International Taxation), Dehra Dun (ITO). The ITO, vide order dated 17.2.2011, directed INGC to deduct tax @ 10% plus surcharge and education cess on the gross contractual payments including the payments arising on account of all type of expenditure to be made to the non-resident, considering the payments to be made under the contract as fees for technical services . 2.3. In ITA No. 1599/Del/2012, the non-resident was engaged to review 3 D seismic data and identified prospects in Mahanadi deep water blocks namely MNDWN- 98/3 (5884 sq km 3D seismic data in 6 volumes) and NEC-DWN-2002/2 (6314 sq. km 3D seismic data acquired in 6 volumes). The scope of work also includes the assessment of play perception ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the NRC may be subjected to tax @ 10% of the gross profit u/s 44BB of the Act. 4. The revenue is in appeal on the following grounds :- l. Whether on the facts and circumstances of the case, the Ld. CIT(A) has erred in not appreciating that the services rendered by the assessee were in the nature of a Technical Services covered under the provisions of section 9( I )(vii) and taxable under the provisions of sec. I ISA read with section 44 D of the Act. 2. Whether on the facts and circumstances of the case the CIT (A) has erred in holding that the services rendered by the assessee, as a contractor for ONGC towards certification of Ultimate Reserves and Reserves of Mumbai High Field of ONGC were excluded from the definitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of each of the contracts/agreements is inextricably connected with prospecting, extraction or production of mineral oil. The dominant purpose of each of such agreement is for prospecting, extraction or production of mineral oils though there may be certain ancillary works contemplated thereunder. If that be so, we will have no hesitation in holding that the payments made by ONGC and received by the non-resident assesses or foreign companies under the said contracts is more appropriately assessable under the provisions of section 44BB and not section 44D of the Act. On the basis of the said conclusion reached by us, we allow the appeals under consideration by setting aside the orders of the High Court passed in each of the cases before it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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