TaxTMI 
TaxTMI 
2014 (3) TMI 172
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....ds of appeal:- "1. Whether on the facts and circumstances of the case, the CIT(A) has erred in holding that the nature of services provided by the assessee which were providing mud services, were not in the nature of fees for technical services as defined in sec. 9(1)(vii) of the Act. 2. Whether on the facts and circumstances of the case, the CIT(A) has erred in holding that the income of the assessee was not taxable under the provisions of sec. 44DA r.w.s. 9(1)(vii) even though the nature of services rendered by the assessee were technical in nature, and not for a project undertaken by the assessee. 3. Whether on the facts and circumstances of the case, the CIT(A) has erred in holding that the income of the assessee was taxable un....
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.....Ltd. 8. Whether the CIT(A), was right in allowing losses on account of expenditure claimed for a contract which had been wound up and for which vouchers were not presented to AO, without examining the vouchers at Appellate stage having rejected these under Rule 46A. 9. Whether on the facts and circumstances of the case, the CIT(A) has erred in holding that the AO was not right in estimating the income of the assessee @ 25% since the assessee failed to produce the books of accounts during the assessment proceedings, despite adequate opportunity. 10. The appellant prays for leave to add, amend, modify or alter any grounds of appeal at the time of before the hearing of the appeal." 3. The facts of the case are that the assessee is....
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....sion of Hon'ble Jurisdictional High Court in the case of DIT Vs. OHM Limited - [2013] 352 ITR 406 (Delhi). The Revenue, aggrieved with the order of the CIT(A), is in appeal before us and by raising all the above grounds, the Revenue has claimed that the Assessing Officer was justified in estimating the income at 25% of the receipt under Section 44DA and the CIT(A) was not justified in directing the Assessing Officer to determine the income under Section 44BB. 5. We have heard the arguments of both the sides and perused the material placed before us. We find that Hon'ble Jurisdictional High Court examined the scope of Section 44BB and Section 44DA at length in the case of OHM Limited (supra) wherein their Lordships held as under:-....
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....lishment to its head office or to any of its other offices. Under section 44BB, there is no reference to a permanent establishment in India. The type of services contemplated by the provision is more specific than what is contemplated by section 44DA. The proviso to sub-section (1) of section 44BB can only mean that the flat rate of 10 per cent of the revenues cannot be deemed to be the profits of the non-resident where the services are of the type which do not fall under that section, but are more general in nature so as to fall under section 44DA. Similarly, the second proviso to sub- section (1) of section 44DA can only be interpreted to mean that where the services are general in nature and fall under the sub-section read with Explan....
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....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":" 7. When we read Section 44BB in the light of the scope of the contracts entered into by the assessee with ONGC, we find that the scope of the work of the assessee falls squarely within the ambit of Section 44BB because the first contract is for hiring of production testing surface equipment in operation condition for carrying out production testing of high pressure....
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....t the assessee filed the return of income declaring nil income and has declared the loss of Rs. 46,11,549/- in the profit & loss account filed alongwith the return of income. The Assessing Officer determined the income of the assessee by applying Section 44DA of the Act and estimated the net profit at 25% of the gross receipts. The Assessing Officer has also levied penalty under Section 271(1)(c) in view of the variation between the income returned and income assessed. On appeal against the quantum, learned CIT(A) directed the Assessing Officer to determine the income under Section 44BB which is upheld by us by dismissing the Revenue's appeal in ITA No.1510/Del/2013. The CIT(A) also cancelled the penalty holding that the addition made b....