TaxTMI 
TaxTMI 
2016 (7) TMI 199
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.... 12.12.2008 2010-11 1,25,65,908/- Mum/NSE/OPT/ MN/SCON/VA&SI/ GCA/NOMI/08- 09/245 14.11.2008 2010-11 16,30,88,322 UK NIR/MM/MH/SCO N/77/NOMI/GCA/ 08-09/PB-6003 04.07.2009 2010-11 The non-residents to whom the payments have been made are resident of United Kingdom (UK) in ITA No. 4998/Del/12 and 4652/Del/13 and of USA ITA No.4654/Del/13. 2.1. The nature of work of the contract were as under:- I.T.A. No. Nature of work 4998/Del/2012 The non-resident was engaged to process three dimensional (3D) seismic data of the block NEC-DWN- 2002/2 in Mahanadi Basin at its premises in UK. Seismic data indicates existence of hydrocarbons deep inside the earth and helps to identify where to drill for the same. 4652/ Del/ 2013 Under contract dated 04.07.2009: Association in Redevelopment and Management of Mumbai High Redevelopment Project for optimal exploitation of Hydrocarbon Resources of ONGC. Under contact dated 14.11.2008: Assist ONGC in hiring integrated Consultant for Vashishta and S1 field development. 4654/ Del/2013 Assist ONGC in hiring Integrated Consultant for Vashistha and SI field development 2.2 Th....
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....facts and circumstances of the case the CIT(A) has erred in deleting the interest U/S 234B by relying upon the decision of Hon'ble Delhi High Court in the case of Jacabs Civil Incorporation! Mitsubishi Corporation (2010) ITR 578 (Delhi) which has not been accepted by the department against which SLP has filed before the Apex against in the case of Jacabo Civil Incorporated/Mitsubishi involving similar issue." 3.1 For the year under consideration, the non-resident was engaged to process three dimensional (3D) seismic data of the block NEC-DWN-2002/2 in Mahanadi Basin at its premises in UK. Seismic data indicates existence of hydrocarbons deep inside the earth and helps to identify where to drill for the same. 3.2 Ld. A.R. submits that the issue stands covered in favour of the assessee vide order passed by Hon'ble Supreme Court in assessee's own case , reported in (2015) 59 Taxman.com 01/ 376 ITR 306. 3.3 We have perused the orders passed by the authorities below, arguments advanced by both the side and the decision passed by Hon'ble Supreme Court in the assessee's own case. The only issue that arises from the grounds of appeal filed by the Revenue is in respect ....
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....sions 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 the 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 2W) of the Mines Act, 1952 which define mines and minerals and the provisions of the Oil Fields (Regulation and Development) Act, 1948 specifically 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. 2. The facts indicate that the pith and substance of each of the contracts/agreements is inextricably' connected with prospecting, extraction or production of mineral oil. The dominant purpose of each of suc....
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....3, the non-resident / foreign company was engaged in the process of discovering oil and gas fields need to be developed by drilling appropriate number of wells, establishing collection, processing and evacuation facilities, etc. so that optimal production can be taken from the same. Redevelopment is the process of carrying out further development activities in an already producing field to optimize production. The non-resident rendered consultancy services in this regard under contract dated 04.07.2009 and 14.11.2008. 4.2 Ld. A.R. submits that the issue stands covered in favour of the assessee vide order passed by Hon'ble Supreme Court in assessee's own case , reported in (2015) 59 Taxman.com 01/ 376 ITR 306. 4.3 We have perused the orders passed by the authorities below, arguments advanced by both the side and the decision passed by Hon'ble Supreme Court in the assessee's own case. The assessee has received services for the purpose of activities relating to prospecting for or exploration of mineral oils. The only issue that arises from the grounds of appeal filed by the Revenue is in respect of the taxability of the amount paid to the nonresident / foreign companies ....
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....appeal. Accordingly, the appeal filed by the Revenue for Assessment Year 2010-11 stands dismissed. 5. Grounds: I.T.A.No. 4654/Del/2013 (Assessment Year 2010-11): "1. Whether on the facts and circumstances of the case, the CIT(A) has erred in bringing to tax the receipts of non-resident from design, composition and implementation of multi- disciplinary teams (MDT), defining team members roles and responsibilities, developing team charters, coaching the team leads, identification of skill gaps, designing a footprint of functional excellence, providing training in the area of asset management to the MDT, assisting ONGC's executive committee in resolution of issues relating to CRC initiative etc under section 44BB of the Act, instead of Fees for Technical Services (FTS) as covered under section 9(1 )vii of the Act and duly taxed as such by the AO. 2. Whether on the facts and circumstances of the case the CIT (A) has erred in holding that the income of the assessee was taxable under the presumptive provisions of sec 44BB ignoring the fact that taxability under section 44BB shall not apply in respect of income in the nature of FTS, for a project not undertaken by....