2009 (5) TMI 25

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..... tion with the extraction or production of the mineral oil - catering charges and fuel expenses reimbursed cannot be excluded from the ‘amount’ defined in sub-section (2) of Section 44BB – tribunal’s order set aside
Hon'ble Prafulla C. Pant, J. Hon'ble B. S. Verma, J. 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 12th of October, 2006, passed by the Income Tax Appellate Tribunal, Delhi Bench 'G', New Delhi (hereinafter referred as ITAT), whereby Income Tax Appeal No. 4758 / Del / 2005 (Assessmen .....

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..... AT, which passed the impugned order dated 12th of October 2006, and affirmed the order passed by the CIT(A). Hence, this appeal by the Revenue. 5. Before further discussion, we think it just and proper to quote the provisions 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 .....

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..... B, and thereupon the Assessing Officer shall 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 engaged in the business of exploration etc. of mineral oils. Sub-Section (1) provides that in respect of such assessees notwithstanding anything contained in .....

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