The ITAT allowed the assessee's appeal, ruling that services...

The ITAT allowed the assessee's appeal, ruling that services related to well engineering and other activities in connection with mineral oil exploration fall under the presumptive taxation scheme of section 44BB rather than being taxed as Fee for Technical Services (FTS) under section 115A. The Tribunal clarified that s.44BB constitutes a special provision for computing profits and gains in mineral oil exploration businesses. Relying on the ONGC Ltd Supreme Court decision (2015) and CBDT Circular No. 1862 (22.10.1990), the ITAT held that the lower authorities erred in rejecting the assessee's claim for assessment under section 44BB. The presumptive taxation scheme was deemed applicable to the assessee's activities.