1993 (10) TMI 131

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..... oration, production and transportation of crude oil and natural gas. Amongst the terms of contract, the corporate taxes of that Company (here-in-after referred to as CGG for the sake of convenience) shall be borne by Oil India Ltd. As per those terms the Oil India paid the contracted sums for the job done by CGG and also paid the corporate taxes on behalf of that Company as an Indian agent of that Company within the meaning of section 163 of the Income-tax Act and also filed returns on behalf of that Company. The payments for contract amounts and taxes paid were as under : Asst. year Contract Amt. Paid Taxes 1986-87 6,70,00,611 45,72,791 .....

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..... s in appeal before us. 4. We have carefully considered the submissions on behalf of both the sides and have perused the material on record. We are in full agreement with the decisions of the learned CIT (Appeals) for all the four years. The learned D.R. vehemently argued that section 44BB excluded only those parts of sections 28 to 43A of the Income-tax Act which were contrary to provisions of section 44BB. According to the learned D/R, the provisions of section 28(iv) were not contrary to the provisions of section 44BB but were separate provisions and hence the corporate taxes were rightly considered to be perquisites within the meaning of section 28(iv) by the ld. Assessing Officer and were rightly treated as income of the assessee besi .....

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..... or perquisites. When we read section 44BB as mentioned above, we find that according to that section, notwithstanding anything to the contrary contained in section 28, the profits and gains of a non-resident assessee engaged in the specified business from such business will be deemed to be only a sum equal to ten per cent of the aggregate of amounts specified in sub-section (2). This will mean that the items of income or deemed income mentioned in clauses (i) to (v) of section 28 of the Income-tax Act are not in conformity with the deemed income under section 44BB(1) and hence all such items of income or deemed income have to be ignored when computing income under the special provisions for computing profits and gains under section 44BB of .....

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