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TMI Blog2009 (4) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... - 132 of 2007 - - - Dated:- 24-4-2009 - Prafulla C. Pant and B. S. Verma, JJ. Mr. Arvind Vashisth, Standing Counsel for the appellants. Mr. S.K. Posti, Advocate for the respondent. JUDGMENT [Hon. Prafulla C. Pant, J. (oral)] - This appeal, preferred under Section 260-A of the Income Tax Act, 1961 (hereinafter referred as the Act) is directed against the order dated 22.12.2006, passed by the Income Tax Appellate Tribunal, Delhi Bench 'H', New Delhi (hereinafter referred as ITAT), in Income Tax Appeal No. 324/D/2005, for the assessment year 2001-02. 2. The question of law involved in this appeal, is as under: Whether, the Income Tax Appellate Tribunal has erred in law in holding that mobilization / demobilization ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumptive income under Section 44BB of the Act. Hence, this appeal by the Revenue. 5. Before further discussion, we think it just and proper to quote the relevant provisions of law contained in Section 44BB of the Income Tax Act, 1961, which reads as under: "44BB. (1) Notwithstanding anything to the contrary contained in sections 28 to 41 and sections 43 and 43A, in the case of an assessee [being a non-resident] engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceed to make an assessment of the total income or loss of the assessee under sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee.] Explanation. - For the purposes of this section,- (i) "plant" includes ships, aircraft, vehicles, drilling units, scientific apparatus and equipment, used for the purposes of the said business; (ii) "mineral oil" includes petroleum and natural gas.] 6. The above quoted section makes a special provision for computing profits and gains by the non-resident assessees involved in the business of exploration etc. of mineral oils. It provides that such assessees would be liable to pay the income tax on ten per cent deemed profits, on the amount received by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that the ITAT has erred in law in holding that the mobilization/demobilization charges received by the assessee do not form part of gross receipts for the purpose of computing the income under Section 44BB of the Act. Needless to say that sub-section (1) of Section 44BB read with Clause (a) of sub-section (2) of Section 44BB of the Act expressly provides that it makes no difference whether the amount was paid or payable in or outside India. The section does not exclude the mobilization/demobilization charges paid for transportation of the plant and machinery from the place out of India to the locations in India or its territorial waters. Accordingly, the substantial question of law stands answered. 8. For the reasons, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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