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The Tax Publishers Oil and Natural Gas Corporation Ltd. & Ors. v. ITO & Ors. [ITA Nos. 1522, 1600 (Del.) of 2012, dt. 16-5-2016] : 2016 TaxPub(DT) 2457 (Del-Trib) Income scope whether under section 44BB or 115A *Facts:* Assessee-company in oil exploration business had to pay to a US non-resident DeGolyer and MacNaughton, USA having with no PE in India fee for availing certification report Proved, Proved + Probable, and Proved + Probable and Possible ultimate reserves of oil, condensate associated gas and free gas. It was contractually agreed by ONGC that the taxes are to their account. On an application to the ITO under section 195(2) the officer held it to be taxable @ 10% and thus TDS was deducted and remitted. Subsequently ONGC appealed to the Commissioner (Appeals) on plea that the said service did not make available nor did it fall in the scope of FTS as per Indo-US DTAA. The Commissioner (Appeals) rejected the contention holding that the streams fell in the scope of section 44BB. Aggrieved cross appeals were filed to ITAT the assessee claiming refund of the TDS while the department assailing the orders of the Commissioner (Appeals) of it falling in section 44BB: Held in favour of the assessee that the income streams did not fall in the scope of FTS. Applying: 1. DIT v. Guy Carpenter & Co. Ltd. (2012) 346 ITR 504 2. CIT v. De Beers India Minerals (P) Ltd. 346 ITR 467 It was held that the services did not make available any services to fall in the scope of Indo-US DTAA. In view of the same departmental appeal became infructuous.

The Tax Publishers

Oil and Natural Gas Corporation Ltd. & Ors. v. ITO & Ors. [ITA Nos. 1522, 1600 (Del.) of 2012, dt. 16-5-2016] : 2016 TaxPub(DT) 2457 (Del-Trib)

Income scope whether under section 44BB or 115A

Facts:

Assessee-company in oil exploration business had to pay to a US non-resident DeGolyer and MacNaughton, USA having with no PE in India fee for availing certification report Proved, Proved + Probable, and Proved + Probable and Possible ultimate reserves of oil, condensate associated gas and free gas. It was contractually agreed by ONGC that the taxes are to their account. On an application to the ITO under section 195(2) the officer held it to be taxable @ 10% and thus TDS was deducted and remitted. Subsequently ONGC appealed to the Commissioner (Appeals) on plea that the said service did not make available nor did it fall in the scope of FTS as per Indo-US DTAA. The Commissioner (Appeals) rejected the contention holding that the streams fell in the scope of section 44BB. Aggrieved cross appeals were filed to ITAT the assessee claiming refund of the TDS while the department assailing the orders of the Commissioner (Appeals) of it falling in section 44BB:

Held in favour of the assessee that the income streams did not fall in the scope of FTS.

Applying:

1. DIT v. Guy Carpenter & Co. Ltd. (2012) 346 ITR 504

2. CIT v. De Beers India Minerals (P) Ltd. 346 ITR 467

It was held that the services did not make available any services to fall in the scope of Indo-US DTAA. In view of the same departmental appeal became infructuous.