mineral oils

The profits derived from business of providing services in connection with the prospecting for or extraction or production of mineral oil are squarely and exclusively governed by Section 44BB, irrespective of the nature of services, provided the services are intimately connected to Prospecting and exploration of oil. Therefore the ruling in P6 of 1995 cannot be called in aid by the Revenue to sustain its plea. Full Article

S. 44BB applies to an assessee engaged in the business of providing services or facilities in connection with ….. the prospecting … of mineral oils. On the other hand, Explanation 2 to s. 9 (1) (vii) defines “fees for technical services” to mean consideration for the rendering of technical services but not including consideration for mining or like project undertaken by the recipient. Full Article

SUMMARY OF CASE LAW The mobilization/ demolization charges received by a non-resident foreign company in connection with supply of plant and machinery form part of gross receipts for the purpose of computing the income under section 44BB irrespective of whether the same was paid or payable in or outside India. Full Article

SUMMARY OF CASE LAW The catering charges and fuel expenses reimbursed cannot be excluded from the `amount’ defined in sub-section (2) of section 44BB for computing profits and gains in connection with the business of exploration, etc., of mineral. CASE LAW DETAILS Decided by: HIGH COURT OF UTTARAKHAND, In The case of: CIT v RBF Rig [...] Full Article