2016 (5) TMI 1586

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....enience they are heard together and disposed off by way of this common order. 2. Facts of the case :- Oil and Natural Gas Corporation Limited (ONGC) had, against contract No. MR/MM/MH/JRB/Ultimate Reserves/2010/Y16RS 10001/PB-7007 dated 22.11.2010 made payments of USD 6,50,000/- to Gaffney Cline & Associates Ltd. UK (non-resident) for Certification of Ultimate Reserves and Reserves of Mumbai High field of ONGC. The non-resident is a tax resident of United Kingdom (UK) in ITA No. 1596/Del/12 and 1597/Del/12, 1598/Del/12 and of CANADA in ITA No. 1599/Del/12. 2.1. The scope of work of the contract in ITA No. 1596/Del/12 and 1597/Del/12 includes Certification of Proved, Proved + Probable and Proved + Probable and Possible Ultimate Reserves ....

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....cation cess on the gross contractual payments including the payments arising on account of all type of expenditure to be made to the non-resident , considering the payments to be made under the contract as " fees for technical services". He further directed that if the assessee does not have a Permanent Account Number (PAN) in India, TDS should be deducted as per the provisions of section 206AA of the Act. 3. Ld. CIT(A) in his order has held that, the services provided by NRC's (non resident company) to ONGC are for the purpose of prospecting for or exploration of mineral oils and thus section 44BB of the Act squarely applies to the facts of this case. He held that since the activity pertains to mining, it is out of the purview of section....

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....not be apply in the case where 44DA or sec. IISA, applied as corroborated by insertion of clarificatory proviso to sec. 44BB and sec. 44DA to this effect in the Act. 4. Whether on the facts and circumstances of the case the CIT (A) has erred in not appreciating the fact that proviso to sec. 44DA brought about the Finance Act to 2011 being clarificatory in nature, its application has to be read into the main provisions with effect from the time the main provision came into effect in view of the decision of the Hon'ble Supreme Court in the case of Sedco Forex International Drilling v/s CIT. " 5. The issue is no more res integra. The Hon'ble Supreme Court in the case of Oil and Natural Gas Corporation Ltd. vs. CIT (Civil appeal No. 73....