TMI Blog2018 (6) TMI 1842X X X X Extracts X X X X X X X X Extracts X X X X ..... a contrary view. Accordingly, we also hold that the receipts of the assessee are chargeable to tax as per provisions of section 44BB of the Act. - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For the Assessee : Sh. Sandeep Karhail, Advocate For the Revenue : Sh. Sanjay Kumar Pandey, Sr. DR ORDER PER L.P. SAHU, A.M.: This is an appeal filed by the assessee, challenging the findings of the Dispute Resolution Panel-II, New Delhi as incorporated in the assessment order passed u/s 143(3)/144C(13) of the Income Tax Act, 1961. Following grounds have been raised by the assessee : Based on the facts and circumstance of the case and in law, KOP Surface Products (Services) Pte Limited (f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces of the case and the legal position in this regard. 4. erred in not appreciating that in view of decision of Hon ble Delhi High Court in the case of DIT v. OHM Ltd.: 352 ITR 406 services performed by the Assessee are covered within the ambit of section 44BB of the Act. Estimation of income at 25 percent of gross revenues 5. Without prejudice to the above, erred in not following the directions of the DRP for taxing the income as FTS under Section 9(1)(vii) of the Act read with Article 12 of the India-Singapore DTAA at the rate of 10 per cent of the gross revenues, instead applying an arbitrary estimate of taxable income at 25 per cent of gross revenues in the computation. 6. Without prejudice to the above, erred in passi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India Ltd.). The assessee had also earned income during the year from providing well-head services in terms of contract with Gujarat State Petroleum Corporation Ltd. The assessee had offered the gross revenue of Rs. 67,82,671/- from the above two contracts for taxation in its return of income after applying the deemed profit rate of 10% u/s 44BB of the Act. However, the Assessing Officer denied the applicability of section 44BB to the assessee on the ground that the services rendered by the assessee were in the nature of fee for technical services (FTS). The Assessing Officer accordingly brought the gross revenue to tax u/s 9(1)(vii) read with section 44DA of the Act. Since the assessee had not maintained any books of accounts, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aforesaid judgment of the Hon ble Apex Court. Ld. AR also filed a copy of the assessment order dated 17.03.2006 for assessment year 2013-14 and submitted that the Assessing Officer has accepted the assessee s claim of being assessed u/s 44BB of the Act in this assessment year and that the facts in assessment year 2013-14 and assessment year 2010-11 (the year to which this appeal pertains) are similar and there has been no change in business. 4. Ld. CIT DR placed his reliance on the findings of the lower authorities and vehemently argued that the facts in assessee s case were distinguishable from the facts of the ONGC Limited. 5. We have heard the rival submissions and have also perused the record. A reference can be made to the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act would cover rendering of service like imparting of training and carrying out drilling operations for exploration of and extraction of oil and natural gas and hence payments made under such agreement to a non-resident/foreign company would be chargeable to tax under the provisions of section 44BB and not section 44D of the Act. We do not see how any other view can be taken if the works or services mentioned under a particular agreement is directly associated or inextricably connected with prospecting extraction or production of mineral oil 5.2 Respectfully following the judgment of the Hon ble Apex Court, we hold that the entire receipts of the assessee will be chargeable to tax under section 44BB of the Act. 4. In view of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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