2009 (4) TMI 468

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....998- 99. 2) Following is the question of law involved in this appeal: Whether, reimbursement of catering charges is not liable to be included in 'amount' mentioned in sub-section (2) of Section 44BB of the Income Tax Act, 1961? 3) Heard learned counsel for the parties. 4) Brief facts of the case giving rise to this appeal are that assessee, a non-resident company, received a sum of Rs. 98,49,041.15 from M/s Oil and Natural Gas Company Limited and M/s Paramount Offshore as consideration for loss of down hole equipment. The assessee further received catering charges amounting to Rs. 16,12,958/-. But the aforesaid two charges were not offered for taxation. The Assessing Officer took the view that the aforesaid amount received by the as....

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....providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils, 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 tax under the head "Profits and gains of business or profession": Provided that this sub-section shall apply in a case where the provisions of section 42 or section 44D or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections.(2) the amounts referred to in sub-section (1) shall be the following, namely :- (a) the amount....

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....ed section makes a special provision for computing profits and gains by the non-resident assessees engaged in the business of exploration etc. of mineral oils. Sub-Section (1) provides that in respect of such assessees notwithstanding anything contained in Section 28 to 41 and Section 43 to 43A of the Act, an assessee shall be deemed to have earned ten per cent profits on the amount mentioned in sub-section (2), received by him. The amount mentioned in sub-section (2), as quoted above, clearly shows that the amount paid to the assessee on account of provision of services and facilities in connection with the extraction or production of mineral oils, whether paid in or outside India, are to be included. The words used in the section, in our ....