2009 (4) TMI 69

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....essment year 2001-02. 2. The question of law involved in this appeal, is as under: Whether, the Income Tax Appellate Tribunal has erred in law in holding that mobilization / demobilization charges in respect of voyage conducted in Indian territorial waters only, are to be included in the gross revenue and the remaining amount of such charges are not part of the gross revenue, for the purposes of computation of income under Section 44BB of the Income Tax Act, 1961? 3. Heard learned counsel for the parties. 4. Brief facts of the case giving rise to this appeal are that assessee, a non-resident company, engaged in business of extraction of mineral oils, submitted its return of income declaring income at Rs. 4,74,73,259/- for the Assessment ....

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....e prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession": Provided that this sub-section shall apply in a case where the provisions of section 42 or section 44D or section 115A or section 293A apply for the purposes of computing profits or gains or any other income referred to in those sections. (2) the amounts referred to in sub-section (1) shall be the following, namely :- (a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his behalf on account of the provision....

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....s of exploration etc. of mineral oils. It provides that such assessees would be liable to pay the income tax on ten per cent deemed profits, on the amount received by them. The amounts referred under sub-section (1) of Section 44BB of the Act are explained in sub-section (2), as quoted above, and the amounts of which ten per cent deemed profits is chargeable includes the sum paid or payable, whether in or outside India, to the assessee or to any person on his behalf on account of provision of services and facilities in connection with, or supply of plant and machinery used on hire, or to be used, in the prospecting for, or extraction or production of, mineral oils in India. The amount received by the assessee in connection with mobilization....