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The Tax Publishers Viking Maritime Inc. v. Dy. CIT [ITA Nos. 2652 (Del) of 2011, 2297, 5363 & 5364 (Del) of 2012, 491 (Del) of 2014 & 1247 (Del) of 2015, dt. 25-4-2016] : 2016 TaxPub(DT) 2234 (Del-Trib) Assessability whether under section 44BB or section 44DA *Facts:* Assessee non-resident in the business of 2D/3D seismic screening for oil exploration had received sums from Reliance industries Ltd. The same was offered under section 44BB. Officer held that the same is taxable under section 44DA. This was upheld by the DRP. On further appeal: Held in favour of the assessee since they were into mineral/oil exploration the scope fell into section 44BB in the absence of a PE. Had there been a PE then it would be taxable under section 44DA. The distinction was explained as under :-- (i) Fee for technical services rendered in connection with prospecting for or extraction or production of mineral oil having business PE or fixed place of profession (Section 44DA); (ii) Fee for technical services rendered in connection with prospecting for or extraction or production of mineral oil without having business PE or fixed place of profession (Section l15A); (iii) Other fee for technical services having business PE or fixed place of profession (Section 44DA); (iv) Other fee for technical services without business PE or fixed place of profession (Section 115A); The explanation inserted in section 44BB/44DA can only be prospective. Baker Hughes Asia Pacific Ltd. v. Addl. DIT, rendered in ITA Nos. 5283/Del/2010 and 420/Del/2012 and others 2014-TII-104-ITAT-DEL-INTL explained for prospective application of the explanation.

The Tax Publishers

Viking Maritime Inc. v. Dy. CIT [ITA Nos. 2652 (Del) of 2011, 2297, 5363 & 5364 (Del) of 2012, 491 (Del) of 2014 & 1247 (Del) of 2015, dt. 25-4-2016] : 2016 TaxPub(DT) 2234 (Del-Trib)

Assessability whether under section 44BB or section 44DA

Facts:

Assessee non-resident in the business of 2D/3D seismic screening for oil exploration had received sums from Reliance industries Ltd. The same was offered under section 44BB. Officer held that the same is taxable under section 44DA. This was upheld by the DRP. On further appeal:

Held in favour of the assessee since they were into mineral/oil exploration the scope fell into section 44BB in the absence of a PE. Had there been a PE then it would be taxable under section 44DA. The distinction was explained as under :--

(i) Fee for technical services rendered in connection with prospecting for or extraction or production of mineral oil having business PE or fixed place of profession (Section 44DA);

(ii) Fee for technical services rendered in connection with prospecting for or extraction or production of mineral oil without having business PE or fixed place of profession (Section l15A);

(iii) Other fee for technical services having business PE or fixed place of profession (Section 44DA);

(iv) Other fee for technical services without business PE or fixed place of profession (Section 115A);

The explanation inserted in section 44BB/44DA can only be prospective. Baker Hughes Asia Pacific Ltd. v. Addl. DIT, rendered in ITA Nos. 5283/Del/2010 and 420/Del/2012 and others 2014-TII-104-ITAT-DEL-INTL explained for prospective application of the explanation.