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TMI Blog2012 (11) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... of the vessel beyond 200 nautical miles from the Indian costline. 2. The facts as available from the concerned orders are that the assessee ("EMGS" for short) is a non-resident company showing revenues from a contract dated 30.12.2005 with ONGC. It offered its revenues u/s 44BB (1) of the IT Act to assess, under the said contract, undertook for offshore activities in the nature of seismic data acquisition (i.e., sea bed logging/electro-magnetic imaging), processing and interpretation, for which activities, the vessel Sasha was used, in connection with prospecting of oil and natural gas. The assessee, for managing the said contract, had established a project office in India. The assessee took the stand before the Assessing Officer that mobi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lear from the engineer's certificate and the details of mobilization revenue, which were filed before the authorities below (filed as annexures 'A' and 'B' to the synopsis before us); that "Sedco Forex" International Inc. (supra) has wrongly been applied, since in that case the mobilization was from outside India to inside India; that as per the Indo-Norway DTAA, business profits for foreign enterprise would be taxable in India only where the enterprise has a permanent establishment in India, and that too only to the extent of such profits are attributable to the PE; that in the present case, no profits are attributable to the assessee's project office, since the project office of the assessee did not have any role t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtation of drilling units of rigs to these specified drilling locations in India; that thus, the mobilization charges were re-imbursement of expenditure; that the payer was liable to pay a fixed sum as stipulated in the contract, regardless of the actual expenditure which might be incurred by the assessee for the purpose; that in view of the fictional taxing provision contained in Section 44BB of the IT Act, the Assessing Officer was right in adding the amount received by the assessee towards mobilization charges for the purpose of imposing income-tax; and that the Ld. Commissioner (Appeals) and the Tribunal were also right in upholding the order of the Assessing Officer. 9. In the present case, the Assessing Officer made the addition by o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serves to be dismissed." 11. A reading of Sedco Forex International Inc. (supra), makes it clear that revenues on account of mobilization are to be brought to tax in India. Sedco Forex International Inc. (supra) has been rendered by the Hon'ble Uttarakhand High Court, which happens to be the jurisdictional High Court in the present case. Sedco Forex International Inc. (supra), therefore, is squarely applicable to this case. No decision to the contrary has been brought to our notice. Sedco Forex International Inc. (supra), as such, is binding on us. Both the authorities below have concurrently followed this decision while deciding against the assessee. That being so, finding no error therein, the order under appeal, passed by the Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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