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TMI Blog2018 (6) TMI 1842X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the case and in law, KOP Surface Products (Services) Pte Limited (formerly known as Aker Solutions (Services) Pte Limited (hereinafter referred to as 'the Appellant') respectfully craves leave to prefer an appeal under section 253 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] against the order passed by the Deputy Director of Income-tax (International tax) Dehradun [hereinafter referred to as 'learned AO'] under Section 143(3) read with section 144C(13) of the Act pursuant to the directions of the Dispute Resolution Panel - II ('DRP'), New Delhi dated 30 October 2013 on the following grounds, each of which are without prejudice to one another: On the facts and in the circumstances of the case and in law, the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. 6. Without prejudice to the above, erred in passing the order in violation of provisions of section 144C(10) of the Act. 7. Without prejudice to the above, the arbitrary estimate of taxable income at 25 percent of gross revenues by the Learned AO is unreasonable, excessive and ought to be reduced substantially. 8. erred in not appreciating that an Assessee opting for presumptive provisions of section 44BB(1) is not required to maintain books of accounts unless the Assessee would require his taxability to be lower that the presumptive rate of 10 per cent. Levy of penalty under Section 271(1)(c) of the Act 9. erred in initiating penalty proceedings under Section 271 (1 )(c) of the Act on the ground that the Assessee has conceal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny books of accounts, the Assessing Officer estimated the net profit @25% of gross receipts. It was the contention of the assessee that the activities performed by the assessee related to providing services 'in connection' with installation/handling tools to facilitate wellhead/ X-mas tree installation relating to prospecting etc. of mineral oil. The assessee also contended that it had provided technical support in relation to well-head/X-mas tree equipment. The Hon'ble DRP also upheld the action of the Assessing Officer. Aggrieved, the assessee is in appeal before the Tribunal. 3. We have heard the submissions of both the parties and have gone through the entire material available on record. During the course of hearing, both the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence can be made to the decision of the Hon'ble Apex Court in ONGC vs. CIT & Anr. in Civil Appeal No 731 of 2007 wherein the Hon'ble Apex Court in its Order dated 01/07/2015 has allowed the appeal of ONGC on the substantial question of law framed which reads as, " Whether the amounts paid by the ONGC to the nonresident assesses/foreign companies for providing various services in connection with prospecting extraction or production of mineral oil is chargeable to tax as 'fees for technical services' under section 44D read with Explanation 2 to section 9(l)(vii) of the Income Tax Act or will such payments be taxable on a presumptive basis under section 44BB of the Act?" 5.1 The Hon'ble Apex Court has answered the question as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." 4. In view of the above decision of Co-ordinate Bench rendered in the case of assessee itself for A.Y. 2010-11 (supra), we have no reason to take a contrary view. Accordingly, we also hold that the receipts of the assessee are chargeable to tax as per provisions of section 44BB of the Act. Therefore, grounds Nos. 1 to 4 of appeal deserve to be allowed. The alternative grounds Nos. 5 to 8, thus, become academic and need not to be adjudicated separately. Grounds Nos. 9 & 10 pertaining to levy of penalty are dismissed being premature and ground No. 11 relating to levy of interest is consequential in nature. Accordingly, the appeal of the assessee deserves to be partly allowed. 5. In the result, the appeal is partly allowed. Order pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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