TaxTMI 
TaxTMI 
2023 (2) TMI 1240
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....ed out the case set up by both the parties. 3. For the sake of convenience, the relevant part of the order dated 30.01.2023 is set forth hereafter: "3. The issue which arises for consideration is: whether the amounts received by the respondent/assessee from M/s Reliance India Ltd. (RIL) should be considered as Fees for Technical Services (FTS) and hence exigible to tax under Section 44DA and Section 115Aof the Income Tax Act, 1961 [in short, "the Act"]? 4. According to the Assessing Officer (AO), since the payment received is qua FTS, it will fall under Section 9(1)(vii) of the Act and is also covered by the provisions of Article 13 of the India-France Double Taxation Avoidance Agreement (DTAA). 5. To be noted,....
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....o Section 9(1)(vii), the said explanation is extracted hereafter : "For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries". 5. One of the points in issue before the Income Tax Appellate Tribunal [in short "Tribunal"] and before this Court was, whether the activities carried out by the respondent/assessee fall with....
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....rview of FTS as defined under Explanation 2 to section 9(1)(vii) of the Act. That being the factual and legal position, the amount received by the assessee cannot be treated as FTS under section 9(1)(vii) of the Act. That being the case, the provision of the Act being more beneficial in such a scenario, as per section 90(2) of the Act, will be applicable. Therefore, there is no need for us to examine the applicability of the term „FTS‟ under India - France Tax Treaty. Thus, once the amount received by the assessee does not fall within the definition of FTS under section 9(1)(vii) of the Act, by default, section 44DD would not apply to such payment." 8. There is no question of law proposed by the appellant/revenue, that this f....
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....clear that profits earned by a non-resident engaged in the business of providing services or facilities in connection with or supplying plant and machinery on hire used, or to be used in the prospecting for or extraction or production of mineral oils would be taxable at the rate of 10% of the aggregate amount as specified in sub-section (2). Off course, the proviso to sub-section (1) of section 44BB carves out an exception by providing that the provision would not apply in a case where provision of section 42 or section 44D or section 44DA or section 115A or section 293A would apply for computing profits and gains of the business. In the facts of the present case, admittedly, entire case of the Revenue is, assessee's income is to be compute....
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....surface well data, providing repair plan of wells and supervise repairs, repair of gas turbine, gas control system and inspection of gas turbine and generator, repair and inspection of turbines, repair, inspection and overhauling of turbines, expert advice on the device to clean inside of a pipeline, feasibility study of rig to assess its remaining useful life and to carry out structural alteration, etc. were found to be in connection with prospecting for or exploration or extraction of mineral oils. The Hon'ble Supreme Court, while taking note of the nature of work to be executed under the contract, has observed that the pith and substance of the contract is inextricably connected with prospecting for or extraction or production of mineral....