TMI Blog2007 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. None appeared for the respondent. JUDGMENT 1. This appeal is directed against the order dated 15.9.2006 passed by the Income Tax Appellate Tribunal, Delhi Bench 4A4, New Delhi (for short, the ITAT) passed in ITA No. 794/Del/1997 pertaining to Assessment Year 1991-92, whereby the ITAT has upheld the judgment of the CIT (Appeals) and dismissed the appeal of the Revenue. The CIT (Appeals) vide his order dated 16.7.1996 allowed the appeal of the assessee and had held that addition of Rs. 6,16,989/- received by the assessee on account of reimbursement of freight and transportation charges actually incurred in respect of equipment. Both CIT (Appeals) as well as the ITAT has held that these charges were freight and transportation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession": Provided that this sub-section shall not apply in a case where the provisions of section 42 or section 44D or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. (2) The amounts referred to in sub-section (1) shall be the following, namely:- (a) the amount paid or payable (whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed profits and gains under sub-section (1) shall be @ 10 per cent of the aggregate amount specified in sub-section (2). We proceed to analyze sub-section (2). Clause (a) of sub-section (2) refers to the amounts, (A) paid to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India, and (B) payable to the assessee (whether in or out of India) on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the income tax under Section 143 (3). Section 44BB is a complete code in itself. It provides by a legal fiction to be the profits and gains of the non-resident assessee engaged in the business of oil exploration @ 10 per cent of the aggregate amount specified in sub-section (2). It is not in dispute that the amount has been received by the assessee company. Therefore, the Assessing Officer added the said amount which was received by the non-resident company rendering services as per provisions of Section 44BB to the ONGC and imposed the income tax thereon. 7. Accordingly, for the reasons recorded above, we set aside the judgment and order of the ITAT and order of the CIT (Appeals). The order of Assessing Officer is confirmed. The ques ..... X X X X Extracts X X X X X X X X Extracts X X X X
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