2012 (11) TMI 584

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion revenue attributable to the operation of the vessel beyond 200 nautical miles from the Indian costline. 2. The facts as available from the concerned orders are that the assessee ("EMGS" for short) is a non-resident company showing revenues from a contract dated 30.12.2005 with ONGC. It offered its revenues u/s 44BB (1) of the IT Act to assess, under the said contract, undertook for offshore activities in the nature of seismic data acquisition (i.e., sea bed logging/electro-magnetic imaging), processing and interpretation, for which activities, the vessel Sasha was used, in connection with prospecting of oil and natural gas. The assessee, for managing the said contract, had established a project office in India. The assessee took the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....can be deemed to have accrued in India, as is also clear from the engineer's certificate and the details of mobilization revenue, which were filed before the authorities below (filed as annexures 'A' and 'B' to the synopsis before us); that "Sedco Forex" International Inc. (supra) has wrongly been applied, since in that case the mobilization was from outside India to inside India; that as per the Indo-Norway DTAA, business profits for foreign enterprise would be taxable in India only where the enterprise has a permanent establishment in India, and that too only to the extent of such profits are attributable to the PE; that in the present case, no profits are attributable to the assessee's project office, since the pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h the actual amount incurred by the assessee for transportation of drilling units of rigs to these specified drilling locations in India; that thus, the mobilization charges were re-imbursement of expenditure; that the payer was liable to pay a fixed sum as stipulated in the contract, regardless of the actual expenditure which might be incurred by the assessee for the purpose; that in view of the fictional taxing provision contained in Section 44BB of the IT Act, the Assessing Officer was right in adding the amount received by the assessee towards mobilization charges for the purpose of imposing income-tax; and that the Ld. Commissioner (Appeals) and the Tribunal were also right in upholding the order of the Assessing Officer. 9. In the ....