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TMI Blog2006 (12) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... the total income. In this case, the payments were made outside India and substantial activity of mobilization, etc., was carried out outside India. Therefore, the Hon ble Tribunal came to the conclusion that only such part of the income, which is attributed to the activities carried on in India can be subjected to tax in the hands of the assessee as the income was received outside India. We find no reason to differ with this decision of the Hon ble ITAT in the case of Saipem SPA [ 2003 (12) TMI 280 - ITAT DELHI-B] , being the decision of the Third Member which part takes the character of the decision of the Special Bench. Therefore, respectfully following the aforesaid decision, it is held that only that part of the receipt of the mobiliza ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 1,05,18,750 were not taxable in India as the same pertained to demobilization of the drilling rig from Bombay High to Sharjahan. In this connection, it was pointed out that a major part of demobilization work was done outside Indian territorial waters and, therefore, only that part of the charges, which pertained to the work done in Indian Territorial Waters, should be taxed in India. It was explained that the assessee's case was covered by the decision of Hon'ble ITAT, Delhi Bench "B" (Third Member) in the case of Saipem SPA v. Dy. CIT [2004] 88 ITD 213. However, the Assessing Officer referred to the decision of Hon'ble ITAT, Delhi Bench "B" in the case of Sedco Forex International Drilling Inc. v. Dy. CIT [2000] 72 ITD 415. In that ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer did not accept this position also and he came to the conclusion that the aforesaid amounts should be included for finding out presumptive income under section 44BB of the Act. 2.2 Aggrieved by this order, the assessee moved appeal before CIT(A)-I, Dehradun. It may be added here that the assessee took two separate ground Nos. 4 and 6 in respect of demobilization charges and mobilization charges respectively. The learned CIT(A) pointed out that the Assessing Officer had rejected the case of the assessee by following the decision in the case of aforesaid Sedco, in respect of mobilization and demobilization charges. There were contrary decisions in the matter and it cannot be said that the case of the assessee was covered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stt. CIT [IT Appeal No. 2215 (Delhi) of 1997, dated 18-3-2002] for assessment year 1995-96; (ii) Dy. CIT v. Ensco Maritime Ltd. [IT Appeal No. 3869 (Delhi) of 2002, dated 15-2-2006]; (iii) Dy. CIT v. Dual Offshore Ltd. [IT Appeal No. 1400 (Delhi) of 2003, dated 8-3-2006]; (iv) Asstt. CIT v. Transocean Offshore Deep Water Drilling Inc. [IT Appeal No. 3906 (Delhi) of 2005, dated 11-10-2006] for assessment year 2003-04; and (v) Asstt. CIT v. Atwood Oceanics Pacific Ltd. [IT Appeal No. 4755 (Delhi) of 2005, dated 12-10-2006]. 4.1 On the basis of these orders, the case of the learned counsel was that mobilization revenues could be included in the receipts, to be computed for the purpose of application of section 44BB of the Act, only to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid or payable, whether in or out of India, on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used or to be used, in the prospecting for, or extraction or production of mineral oil in India is includible in the receipt mentioned in section 44BB. Thus, the aforesaid clause takes into its ambit the amount paid or payable in or out of India on provision of services, etc., for supply of plant and machinery for extraction or production of mineral oil in India. Clause (b) includes in its ambit the amount received or to be received in India for provision of services etc. in connection with exploration of mineral oil outside India. The services were rendered for production of minera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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