Payment made by ONGC to foreign countries for rendering of services is assessable U/s. 44BB and not U/s. 44D

Issue before court: Whether the amounts paid by the ONGC to the non-resident assessees /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(1)(vii) of the Income Tax Act or will such payments be taxable on a presumptive basis under Section 44BB of the Act. Brief facts: The appellant-ONGC has been assessed in a representative capacity on behalf of the different foreign companies with whom it had executed separate...