TaxTMI 
TaxTMI 
2016 (5) TMI 1481
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....o DeGolyer and MacNaughton, USA (nonresident) towards third party certification of Ultimate Reserves and Reserves of 62 fields of ONGC. The non-resident is a tax resident of United States of America (USA) and does not have a Permanent Establishment (PE) in India in terms of Double Taxation Avoidance Agreement (DT AA) between India and USA. Certification work involves review of wire line logs, conventional cores and PVT analysis results, pressure-production history, geological correlations/sections and other related reservoir engineering, geological and production engineering data. The report has to certify Proved, Proved + Probable, and Proved + Probable and Possible ultimate reserves of oil, condensate, associated gas and free gas as on 01....
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.... to qualify as FTS. He held that section 44BB of the Act applies squarely on the facts of this case. He held that the entire payment by ONGC to NRC should be subjected to tax @ 10% of the gross payment as amended u/s 44BB(1) of the Act. Aggrieved both assessee as well as the revenue are in appeal before us. 4. The grounds taken by the assessee are as follows :- 1. "The Ld. Commissioner of Income Tax (Appeals)-II, Dehra Dun, has erred in law and in the facts and circumstances of the case in rejecting the contention of the appellant regarding non-taxability of the receipts of DeGolyer and MacNaughton, USA. 2. The Ld. Commissioner of Income Tax (Appeals)-II, Dehra Dun, has erred in law and in the facts and circumstances of the case in not....
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....e followed as in para 6 of this judgment it has been laid down that ""the sum paid or payable, whether in or outside India to the assessee or to any person on his behalf on account of provisions of services and facilities in connection with...........". This case follows the ruling given in the case of Sedco Forex Intl. Inc. Reported in 299 ITR 238 (UK). Furthermore, in a case before the AAR [Western Geco Intl. Ltd. reported in 201 Taxman 101 (AAR-Delhi) it has been held, following the two case law of the Hon'ble Uttarakhand High Court, that once an assessee opts to come u/s 44BB(1) of the Act, the provision itself deems its profits and gains as 10% of aggregate of amounts specified in sub-section 2 of section 44BB of the Act, i.e.....