https://www.taxtmi.com/caselaws?id=769925 The ITAT Chennai ruled in favor of the assessee regarding payments made to non-resident companies for drilling equipment hire and professional services related to mineral oil exploration. The tribunal held that these payments fall under Section 44BB (presumptive taxation scheme for mineral oil business) rather than being classified as royalties or fees for technical services under Section 115A. The ITAT found that the AO and CIT(A) incorrectly categorized the transactions, noting that CBDT Instruction No. 1862 clarifies such payments are governed by Section 44BB. The assessee's tax deduction at source under Section 44BB was deemed correct, and the CIT(A)'s order was set aside. en-us Mon, 28 Apr 2025 00:00:00 +0530 Fri, 02 May 2025 16:14:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769925 The ITAT Chennai ruled in favor of the assessee regarding payments made to non-resident companies for drilling equipment hire and professional services related to mineral oil exploration. The tribunal held that these payments fall under Section 44BB (presumptive taxation scheme for mineral oil business) rather than being classified as royalties or fees for technical services under Section 115A. The ITAT found that the AO and CIT(A) incorrectly categorized the transactions, noting that CBDT Instruction No. 1862 clarifies such payments are governed by Section 44BB. The assessee's tax deduction at source under Section 44BB was deemed correct, and the CIT(A)'s order was set aside. Case-Laws Income Tax Mon, 28 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769925