Law:

Section:

Section 24AA of the Companies (Profits) Surtax Act, 1964 - Power to make exemption, etc., in relation to participation in business of prospecting for, or extraction, etc., of mineral oils - Assessment year 1987-88 - Whether, as per Notification No. GSR 307(E), dated 31-3-1983, only those categories of foreign companies are exempted from surtax which enter into a works contract and not service contract with Central Government for association or participation of that Government or any person authorized by that Government in any business consisting of prospecting for, or extraction or production of mineral oils - Held, yes - Whether where assessee-foreign company had entered into a contract for providing services to ONGC, which was an Indian company, assessee would not be entitled to claim exemption of surtax on basis of said Notification - Held, yes Circulars & Notifications - Notification No. GSR 307(E) , dated 31-3-1983 FACTS The assessee was a non-resident company executing contract with the ONGC. The ONGC had borne the tax liability on behalf of the said company including the surtax. The Assessing Officer assessed the surtax under the provisions of the Act. The assessee claimed exemption of surtax by relying on Notification No. GSR 307(E), dated 31-3-1983. The Assessing Officer, after going through the contents of the contract between the assessee and the ONGC, recorded a finding that the said Notification was not applicable to the case of the assessee because all the contracts were service contracts and not works contract and, therefore, held that the assessee was not entitled to exemption. On appeal, the Commissioner (Appeals) as well as the Tribunal held that the assessee was entitled to exemption. On revenue's appeal : HELD A conjoint reading of clauses (a ) and (b) of sub-section (2) of section 24AA clearly reveals that both clauses refer to two separate categories of foreign companies. The first category of companies includes those companies with which a contract is entered into for the association or participation of the Central Government or any person authorized by that Government in any business consisting of the prospecting for, or extraction…

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