Law:

Section:

Section 44BB, read with section 9, of the Income-tax Act, 1961 - Non-residents - Mineral Oil, Business for Prospecting, Exploration, Etc., in Case Of - Assessment year 2001-02 and 2002-03 - Whether services rendered by a non-resident company for transportation and jacking up of rigs, review of design and issuance of suitability certificate at assessee's off-shore rigs on high seas set-up for exploration, prospecting and production of mineral oil from seabed would be covered by provisions of section 44BB - Held, yes - Whether, therefore, consideration paid or payable by assessee to non-resident company for such services was not includible in definition of 'fees for technical services' as provided in section 9(1)(vii), read with Explanation 2 thereto - Held, yes Sanjeev Sabharwal for the Appellant. M.P. Rastogi for the Respondent. JUDGMENT Badar Durrez Ahmed, J. - These two appeals arise out of the common order dated 21-4-2006 passed in IT Appeal Nos. 3416 and 3417/Del/2003 in respect of financial years 2000-01 and 2001-02, respectively. The sole issue sought to be raised in these appeals is whether the services rendered by the non-resident company 'Noble Denton and Associates Ltd., (NDAL), UAE' for the transportation and jacking up of rigs, review of design and issuance of suitability certificate is covered under section 9(1)(vii) read with Explanation 2 thereto or under section 44BB of the Income-tax Act, 1961. This is in connection with deduction of tax at source. 2. The Tribunal concluded that a reading of the provisions of section 44BB as well asExplanation 2 to section 9(1)(vii) of the said Act clearly showed that the consideration in question paid or payable by the assessee to NDAL for the services rendered was covered by the provisions of section 44BB and not by section 9(1)(vii) of the Act. 3. This conclusion of the Tribunal is based on the finding that the nature of services rendered by NDAL to the assessee at its off-shore rigs on the high seas were part and parcel of the activities engaged in by the assessee at the offshore rigs set up for exploration, prospecting…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492