Case Law Details
DDIT Vs Louis Dreyfus Armateures SASn (LDA) (ITAT Delhi)
The assessee is a company incorporated under the laws of France and has earned revenues from providing seismic survey vessels on hire to M/s. CGG Marine, a French company, under a global time charter contracts for use in seismic data acquisition and on board processing for prospecting, extraction and production of mineral oils in terms of contract with ONGC. The assessee has offered the gross revenue of Rs.15,81,38,210/- earned from hire of the above vessels for taxation in its return of income after applying the deemed profit rate of 10% u/s.44BB of the Act. The Assessing Officer has denied the applicability of section 44BB in the draft assessment order on the ground that assessee had supplied the vessel to M/s. CGG Marine which was not a party to the production sharing contract with ONGC, instead he treated the entire receipt as royalty. Learned DRP held that the assessee is providing services or facilities in connection with or supplying plant and machinery on hire use or to be used in the prospecting for, or extraction or production of, mineral oils. There is no provision u/s.44BB to support the Assessing Officer’s interpretation of the so called ‘second leg contract’ so as to deny the applicability of the section to the assessee. Only requirement of the section is plant and machinery is given on hire is used or to be used in the prospecting /extraction/production of mineral oil. Thus the learned DRP upheld the applicability of Section 44BB.
FULL TEXT OF THE ITAT JUDGMENT
The aforesaid appeal has been filed by the Revenue against the final assessment order dated 06.01.2014, passed in pursuance of direction given by the learned DRP-II, New Delhi vide order dated 26.12.2013. In various grounds of appeal, the Revenue has raised the following grounds:
“Grounds of Appeal
Please become a Premium member. If you are already a Premium member, login here to access the full content.
