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TMI Blog2009 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... and provides offshore seismic data acquisition and other associated services to global oil companies. Its main business activity is 2D seismic data acquisition and processing and 2D/3D offshore shallow water data acquisition and processing. Its other activities relate to study the earth's structure to identify the existence of hydro carbons which assist oil companies in identifying locations where to drill and explore oil. These services are aimed at increasing exploration success of its oil and gas clients. 2. The applicant has entered into 3 contracts with the Oil & Natural Gas Ltd. (ONGC) on 20th Feb.,2008 for 2D seismic, gravity and magnetic data acquisition and on-board seismic data processing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... echnical services falling under section 9(1)(vii) of the Act and the technical services rendered by the applicant are not covered by the exclusionary provision in Explanation 2 as they cannot be considered to be part of mining project. It is, therefore, submitted that fees for technical services has to be computed under section 44DA, but not section 44BB. 5. Section 44BB reads thus: "44BB (1) Notwithstanding anything to the contrary contained in section 28 to 41 and sections 43 and 43A, in the case of an assessee being a non-resident, engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for; or extraction or production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee. Explanation - For the purposes of this section - (i) "plant" includes ships, aircraft, vehicles, drilling units, scientific apparatus and equipment, used for the purposes of the said business; (ii) "mineral oil" includes petroleum and natural gas." 5.1 This is a provision for computing profits & gains in connection with the business of exploration of mineral oils. It applies to assessee being a non-resident engaged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vii) and 44DA have been exhaustively dealt with along with the related case laws. The facts and questions raised in both the cases are identical and, therefore, there is no need to enter into further discussion on the legal issue. This Authority held in this case that section 44BB is attracted and the Revenue's contention has been rejected. 7. However, the Revenue's representative argued that the CBDT Circular referred to in the above ruling is in the context of different facts and the services were drilling operations which were held to be part of mining project. The Circular, therefore, clarified that Section 44BB was applicable. We cannot accept the contention of the departmental representative in view of the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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