TaxTMI 
TaxTMI 
2016 (1) TMI 134
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....ugh the provision of oilfield equipment on hire along with operating personnel, used the exploration/prospecting/extraction of mineral oil were 'fees for technical services' under section 9(1)(vii) of the Act as opposed to revenues chargeable to tax in terms of section 44BB of the Act. Addition qua revenue not received 1. That the assessing officer erred on facts and in law in including revenue not received by the appellant to the gross taxable receipts. 2. That the assessing officer erred on facts and in law in holding that income from the aforesaid revenues to be in the nature of "fees for technical services". Addition qua taxability under section 115A 1. Without prejudice to our claim that the entire revenue is chargeable to tax under section 44BB of the Income-tax, 1961, the assessing officer erred on facts and in law in holding the revenue to be chargeable to tax @ 20% of the gross revenue under section 115A of the Income-tax Act, 1961. 2. That the assessing officer erred on facts and in law in applying section 115A of the Income-tax Act, 1961 to the appellant, without appreciating that the section is not applicable to the ....
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....es were covered by Section 44BB of the Ace came up for consideration of the DRP in the case of M/s Precision Energy Services Ltd. for the assessment year 2007-08 wherein the stand taken by the AO that income for providing Wireline services was taxable as fee for technical service and not taxable under Section 44BB of the Act. Accordingly, the objection of the assessee was rejected. The AO consequently rejected the claim of the assessee. 5. Now the assessee is in appeal. The ld. Counsel for the assessee submitted that the issued is covered in favour of the assessee by the judgment of the Hon'ble Supreme Court in the case of Oil & Natural Gas Corporation Ltd. Vs CIT & Anr. in Civil Appeal No. 731 of 2007 order dated 01.07.2015. It was further stated that the said judgment has been followed by the Hon'ble Uttarakhand High Court in the case of CIT Vs Precision Energy Services Ltd. in ITA No. 75/2014. It was emphasized that the ld. CIT(A) by following his earlier decision in the case of M/s Precision Energy Services Ltd. (supra) for the assessment year 2007-08 had disallowed the claim of the assessee. However, the said decision was reversed and claim of the assessee was allowed in IT....
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....in the Mines and Minerals (Development and Regulation) Act 1957 regard must be had to the provisions of Entries 53 and 54 of List I and Entry 22 of List II of the 7th Schedule to the Constitution to understand the exclusion of mineral oils from the definition of minerals in Section 3(a) of the 1957 Act. Regard must also be had to the fact that mineral oils is separately defined in Section 3(b) of the 1957 Act to include natural gas and petroleum in respect of which Parliament has exclusive jurisdiction under Entry 53 of List I of the 7th Schedule and had enacted an earlier legislation i.e. Oil Fields (Regulation and Development) Act, 1948. Reading Section 2(j) and 2(jj) of the Mines Act, 1952 which define mines and minerals and the provisions of the Oil Fields (Regulation and Development) Act, 1948 specifically Page relating to prospecting and exploration of mineral oils, exhaustively referred to earlier, it is abundantly clear that drilling operations for the purpose of production of petroleum would clearly amount to a mining activity or a mining operation. Viewed thus, it is the proximity of the works contemplated under an agreement, executed with a non-resident assessee or a for....
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.... design of Pilot Tests. 9. 1520 Engineering and technical support to ONGC in implementation of Cyclic Steam Stimulation in Heavy Oil Wells. 10. 2794 Assessment and processing of seismic data along with engineering and technical support in implementation of Cyclic Steam Stimulation. 11. 1524 Conducting reservoir stimulation studies in association with personnel of ONGC. 12. 1535 Laboratory testing under simulated reservoir conditions. 13. 1514 Consultancy for optimal exploitation of hydrocarbon resources. 14. 2797 Consultancy for all aspects of Coal Bed Methane. 15. 6174 Analysis of data of wells to prepare a job design. 16. 1517 Geological study of the area and analysis of seismic information reports to design 2 dimensional seismic surveys. 17. 7226 Opinion on hydrocarbon resources and foreseeable potential. 18. 7227 Opinion on hydrocarbon resources and foreseeable potential. 19. 7230 Opinion on hydrocarbon resources and foreseeable potential. 20. 6016 Opinion on hydrocarbon resources and foreseeable potential. 30. 2012 Inspection of generator. 21. 6008 Evaluation of....
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....neral oils though there may be certain ancillary works contemplated thereunder. If that be so, we will have no hesitation in holding that the payments made by ONGC and received by the nonresident assessees or foreign companies under the said contracts is more appropriately assessable under the provisions of Section 44BB and not Section 44D of the Act. On the basis of the said conclusion reached by us, we allow the appeals under consideration by setting aside the orders of the High Court passed in each of the cases before it and restoring the view taken by the learned Appellate Commissioner as affirmed by the learned Tribunal." 9. We, therefore, by keeping in view the ratio laid down by the Hon'ble Apex Court in the aforesaid referred to case of Oil & Natural Gas Ltd. Vs CIT & Anr., set aside the impugned order and direct the AO to accept the claim of the assessee that its Revenue is chargeable to tax u/s 44BB of the Act and not u/s 115A of the Act. 10. It is also relevant to point out that in the case of M/s Precision Energy Services Ltd. which was relied by the DRP while deciding the issue against the assessee was subject matter of adjudication before the Hon'ble Uttarakhand....