9911796707
TMI Blog1998 (12) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... e Double Taxation Avoidance Agreement between India and Belgium, the profits attributable to the permanent establishment can be worked out on completed contract method ? 3. Though the said para. 3(a) speaks of deduction of expenses, whether depreciation allowance will be granted on dredgers, boats, equipment, computers and other plant and machinery deployed for the execution of the contract on the basis of cost of acquisition, since the said assets were not put to use in India any time before and no depreciation is 'actually allowed' under the Income-tax Act, 1961 ? 4. Whether repairs and maintenance expenses incurred before commencement of the contract and to be incurred immediately after completion of the contract on dry docking, etc., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the contract or year wise ?" The following submissions have been made by the applicant in this case: 1. The applicant is a company incorporated in Belgium having its registered office at Tragel 23, 9308 Hofstade-Aalst, Belgium. The applicant is engaged in the business of dredging and marine contracting. The business of the applicant is managed by a board of directors who are non-resident foreign nationals. Control and management of the affairs of the company are situated wholly outside India. The company has no branches in India. 2. The applicant has been awarded a contract by Chennai Port Trust for the work of dredging at their new port known as "Ennore Coal Port Project". The total approximate cost of the contract is Rs. 847,914,875 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Agreement between India and Belgium, the applicant will be a resident enterprise of Belgium (sic). Although elaborate arguments were advanced on behalf of the applicant as well as on behalf of the Revenue, the case can be disposed of on the point raised in question No. 8. The question raised by the applicant is whether, on the facts and in the circumstances of its case, the provision of section 44BBB is applicable in its case. The contract obtained by the applicant will go on for a number of years. This contract has been given to the applicant in connection with the turnkey power project which has been approved by the Central Government. Section 44BBB reads as under : "44BBB. Notwithstanding anything to the contrary contained in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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