TaxTMI 
TaxTMI 
2015 (6) TMI 487
X X X X Extracts X X X X
X X X X Extracts X X X X
....ical interpretation of 3D and 2D seismic data are not Fees for Technical Services. 2. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in applying the decision of the ITAT in the case of M/s. CGG Veritas overlooking the fact that the ITAT has clearly held that interpretation of seismic data are in the nature of FTS. 3. Whether on the facts and in the circumstances of the case, the CIT(A) has erred in holding that the income of the assessee even though in the nature of FTS and not covered under the exclusionary proviso there under i.e. not having bee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; 7. Whether the CIT(A) has erred in not appreciating that proviso to sec. 44BB is not inserted 'per majorem cautelam' but explains and clarifies the main provision as the term services or facilities used therein are not defined and the two terms used are too general in nature and thus once the payments are characterized as royalty u/s. 9(1)(vi), they go outside the purview of sec. 44BB and have to be taxed as Royalty. 8. Whether the CIT(A), has erred in not appreciating that assessees reliance on Jindal Drilling is misplaced since S 44DAbeing the special provision for taxation of income in the nature of royaltie....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e leak point identification and core site selection from available 2D and 3D seismic data, core acquisition with USBL System, sample processing, prevention and transportation, laboratories analysis and interpretation and report. During the course of assessment proceedings, the assessee was asked to explain why looking at the nature of services, receipt may not be treated as fees for technical services and tax accordingly. The Assessing Officer did not agree with the explanation of the assessee and held that the assessee is rendering technical services and, therefore, its income is not covered under sec. 44BB of the Income-tax Act, 1961 and taxable as fees for technical services. The Learned CIT(Appeals) on the other hand following the decis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e issue raised in the present appeal regarding the eligibility of the assessee to claim taxability under sec. 44BB(1) of the Act is now fully covered in favour of the assessee by the decision of Hon'ble Delhi High Court in the case of PGS Geophysical AS vs. ACIT - 269 CTR 433 (Del.) holding that 2D and 3D Seismic Services shall come within the ambit of section 44BB of the Income-tax Act, 1961. He submitted further that in the present case the Assessing Officer himself in para No. 7 of the assessment order has accepted that the assessee is having PE in India. The other condition laid down by the Hon'ble High Court for the eligibility of claiming taxability under sec. 44BB of the Act that Revenue of the assessee is effectively connect....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... if the first condition is satisfied and the Assessing Officer finds that contract entered into by the assessee with the contractor were effectively connected with the assessee's PE in India then the income of the assessee would be computed under sec. 44B(1) of the Act. In the present case, there is no dispute that the assessee is having PE in India as it is evident from the contents from page No. 7 of the assessment order wherein the Assessing Officer has noted as "the PE of assessee in India is not disputed as the assessee has filed the return under sec. 44BB offering its income as taxable in India". So far as the other conditions that the Revenue of the assessee is effectively connected with PE in India is concerned, it is found that the....