TaxTMI 
TaxTMI 
2010 (4) TMI 862
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....of Mauritius as defined in Article 4 of Double Taxation Avoidance Agreement (DTAA) between India and Mauritius. 3. The assessee is engaged in the business of designing, fabrication, constructions and installation of platforms, docks, pipelines, jackets and other similar activities which are used in the exploration and production of mineral oil. During the previous year, the assessee undertook and performed with Engineering India Ltd. (EIL) contract for transportation and installation work under N-11 and N-12 Well platforms projects of ONGC Ltd. The assessee filed its return of income on 27-5- 2004, declaring total income of Rs. 14,57,21,590. The assessee's case was that, it executed transportation and installation work under contract wit....
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.... case and in law, the learned CIT(A) has erred in directing the Assessing Officer to delete the interest under section 234B of the Income-tax Act. 4. We have heard Mr. S.S. Rana, learned counsel for the assessee and Mr. Parag Vyas, learned DR. 5. On a careful consideration of the facts and circumstances of the case and a perusal of the papers on record and the order of the authorities below as well as the case laws cited, we hold as follows. 6. The undisputed fact in this case are that the assessee had carried out certain portion of the work under the contract outside India. The CIT (Appeals) has extracted the work at para 3.11 pages 7 to 10 of his order and the bifurcation of the work done outside India and the work done within co....
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....04] 8 ITD 213 (Delhi)(TM) held as follows: "Section 44BB is no doubt described as a "Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils" but the terms "Notwithstanding anything to the contrary" refer to sections 28 to 41 and as sections 43 to 43A. In other words, section 44BB is no doubt a special provision but only with reference to the system of computation of the taxable income, which was earlier being done by sections 28 to 41, etc. It cannot replace, supersede or "lean" in favour of section 5 which is the charging section whereby the scope of total income of an assessee whether it be of a resident or it be of a non-resident is worked out. It would be necessary in e....
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....rson any income, which otherwise falls within the broad framework of his total income as laid down in section 5 such section would prevail. To emphasis, the provisions of section 44AB vis-a-vis the legislative intent only mean that the replace the system of computation of income earlier envisaged by application of the provisions of sections 28 to 41 and sections 43 and 43A, but the provisions of section 5, which is the charging section would remain intact and these by no maxim of interpretation would be superseded by the provisions of section 44BB. As per Circular No. 495, dated 22nd Sept., 1987, section 44BB was no doubt described as a special provision for computing profits and gains in connection with the business of exploration of miner....
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....Explanation is unequivocally indicative of the legislative mandate contained therein. The Explanation, in no uncertain terms, envisages only such type of income to be deemed to accrue or arise in India, under section 9(1)(i). Thus, the income presently under consideration cannot be said to be deemed income just because either the agreement was signed in India or the income has been received in India. The requirements of the Explanation to section 9(1)(i) having not been met, the income is not deemed income. Since the income in question cannot even be construed to be deemed income of the assessee. Since the income in question cannot even be construed to be deemed income of the assessee, there is no taxable income to be computed and so sectio....