TaxTMI 
TaxTMI 
1993 (10) TMI 131
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.... company for exploration, production and transportation of crude oil and natural gas. Amongst the terms of contract, the corporate taxes of that Company (here-in-after referred to as CGG for the sake of convenience) shall be borne by Oil India Ltd. As per those terms the Oil India paid the contracted sums for the job done by CGG and also paid the corporate taxes on behalf of that Company as an Indian agent of that Company within the meaning of section 163 of the Income-tax Act and also filed returns on behalf of that Company. The payments for contract amounts and taxes paid were as under : Asst. year Contract Amt. Paid ....
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....bsp; 84,39,204 6,20,281 (+) 3,50,475 = 9,70,756 The Assessing Officer computed income of that Company under the provisions of section 44BB by estimating the profits at 10 per cent of the amounts mentioned in sub-section (2) of sectio....
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....re rightly considered to be perquisites within the meaning of section 28(iv) by the ld. Assessing Officer and were rightly treated as income of the assessee besides the profits and gains of business or profession computed under the provisions of section 44BB. We, however, are unable to agree with his submissions because the provisions of section 44BB can be read to the following effect for the purposes of the case before us : "Notwithstanding anything to the contrary contained in sections 28 to 41 and sections 43 and 43A, in the case of an assessee, being a non-resident......, a sum equal to ten per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to....