TaxTMI 
TaxTMI 
2010 (5) TMI 453
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.... outside territorial waters of India without taking into consideration the issue that the rig was mobilized because of the operations in India? 2. Whether the Hon'ble ITAT was legally correct in allowing the amount received on account of reimbursement of expenses received from its customers against the expenditure incurred by the assessee in view of provisions contained in Sec. 44BB(2)(a)? 2. It is not disputed, that insofar as the first question is concerned, the same has been answered in favour of the Revenue and against the assessee in Sedco Forex International Inc. Vs. Commissioner of Income Tax & another, (2008) 299 ITR 238. 3. Insofar as the second question of law is concerned, there is a dispute between the learned counsel f....
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....legal fiction, i.e., at 10 per cent of the amount specified in sub-section (2) of section 44BB. Section 44BB is a special provision relating to the non-resident assessee who is providing services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in or outside India. The section is a complete code in itself. Thus, the reliance placed by Sri Porus Kaka, learned counsel for the assessee, is misplaced as we have observed that the amount referred in sub-section (2) of section 44BB are four types of amounts and all the four types of amounts are mutually inclusive and has to be taken into account either all of them or any of them and....
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....vices and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils in India, (c) received by the assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India, and (d) deemed to be received by the assessee in India on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India, which is clear from the perusal o....
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....inery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils outside India. (3) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of account and other documents as required under sub-section (2) of section 44AA and gets his accounts audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing Officer shall proceed to make an assessment of the total income or loss of the assessee under sub-4 section (3) of section 143 and determine the sum payable by, or refundable to, the assessee. Explanation. - For the p....