9911796707
TMI Blog2015 (6) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... it is found that the Assessing Officer has already examined the effective connection of the Revenue of the assessee with the PE in India while holding that the income of the assessee is taxable under sec. 44DA of the Act. The Delhi Bench of the ITAT in the case of Fugro Geoteam AS vs. ADIT (2015 (6) TMI 436 - ITAT DELHI) has noted that the ruling of AAR in the case of Geophzika Torun SP. GO. [2009 (12) TMI 4 - AUTHORITY FOR ADVANCE RULINGS] has been confirmed in the case of DIT vs. OHM Ltd. (2012 (12) TMI 422 - DELHI HIGH COURT). The said judgment was followed in the assessment year 2008-09 in the case of PGS Geophysical AS (2014 (7) TMI 723 - DELHI HIGH COURT ). In the light of above judgments held that for the relevant assessment year i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in applying the decision of ITAT in the case of M/s. CGG Veritas holding that the assessee company had a PE and was thus covered under it when the said decision is binding only in case of assessee not having a PE and the said decision has not been accepted by the Department and an MA has been filed, while appeal was not filed purely on account of tax effect considerations. 5. Whether the CIT(A) has erred in the ignoring decisions of jurisdictional High Court in the case of CIT vs. ONGC as an agent of M/s. Foramer France and CIT vs. M/s. Rolls Royce Pvt. Ltd. (2007- TII-03-High Court Uttrakhand-Intt) holding that FTS is not eligible for 44BB. 6. Whether on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that proviso to sec. 44DA/44BB brought in by the Finance Act, 2011 was only clarificatory in nature and its application has to be read into the Act in view of the decision of the Apex Court in the case of Sedco Forex International Drilling vs. CIT. 2. The issue involved in the above grounds is as to whether the services rendered in connection with 2D and 3D Seismic Data are in the nature of fees for technical services (FTS) or should fall under sec. 44BB of the Act? 3. We have heard and considered the arguments advanced by the parties in view of orders of the authorities below, material available on record and the decisions relied upon. 4. The facts in brief are that during the year, the assessee received revenue on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT in the case of Siem Offshore A.S. Ors. Vs. ADIT ITA No. 1295/Del/2013 (A.Y. 2008-09) and ors. Vide order dated 09.09.2014 in view of the decision of Hon'ble Delhi High Court in the case of PGS Geophysical A.S. vs. ADIT ITA Nos. 612 of 2012, order dated 09.07.2014 has set aside the matter to the file of the Assessing Officer to verify the varying nature of the contract to decide the issue afresh regarding the eligibility of assesee for the benefit made available u/s 44BB of the Act. Learned CIT(DR) submitted that the Hon'ble Delhi High Court in the case of PGS Geophysical A.S. (supra) has been pleased to hold that the receipt of the assessee can be taxed under sec. 44BB only if the assessee has a PE in India during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t facts in the case of CIT vs. ONGC (supra) are distinguishable, hence, it is not applicable in the present case. 7. Considering the above submission, we agree that facts in the case of CIT vs. ONGC (supra) relied upon by the Learned CIT(DR) are different as in that case the assessee was rendering services for inspection of the existing control system of three units, whereas in the present case, the assessee was providing services in connection with 2D and 3D seismic data. Having almost similar facts, and the identified issue as to whether the assessee is eligible for claiming the benefit of taxability under sec. 44BB(1) of the Act is now covered by the decision of Hon'ble Delhi High Court in the case of PGS Geophysical AS vs. ACIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) was followed by the Hon'ble High Court in the assessment year 2008-09 in the case of PGS Geophysical AS (supra). In the light of above judgments of Hon'ble jurisdictional High Court, the ITAT held that for the relevant assessment year i.e. 2008-09, the assessee is entitled to declare its income under the provisions of sec. 44BB of the Act. We thus respectfully following the above cited decisions hold that the assessee is eligible to claim taxability of its income under the provisions of sec. 44BB of the Act. The Learned CIT(Appeals) was thus justified in holding so. The First Appellate Order in this regard is upheld. The issue is thus decided in favour of the assessee and the ground Nos. 1 to 9 involving the issue are accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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