Case Law Details

Case Name : ONGC as representative assessee of Alberta Research Council, Canada Vs. JCIT (ITAT Delhi)
Appeal Number : ITA No. 785 (Del) 2000
Date of Judgement/Order : 23/07/2010
Related Assessment Year : 1997- 1998

CASE LAWS DETAILS

DECIDED BY: ITAT DELHI BENCH `E’, DELHI,

IN THE CASE OF: ONGC as representative assessee of Alberta Research Council, Canada Vs. JCIT, APPEAL NO: ITA No. 785 (Del) 2000, DECIDED ON July 23, 2010

The taxpayer, ONGC, engaged Alberta Research Council, Canada (“ARC”) for conducting a feasibility study on implementation of cycle steam  stimulation (“CSS”) in its oil wells in India.The taxpayer filed a return of income as a representative assessee of ARC and claimed thatthe receipts of ARC from CSS services should be assessed under section 44BB of the Act. The Revenue rejected the contention of the taxpayer and classified the services rendered as‘fees for technical services’. On appeal, the Tribunal held that CSS helped in improving recovery of oil from oil fields by thinning the oil so that it moved from the formation to the well bore. Hence, such services should be excluded from the scope of fees for technical services,which was defined to exclude ‘mining or like projects’. The Tribunal observed that the term ‘in connection with’ appearing in section 44BB of the Act need not be physical operations being carried out below the surface of the earth. Accordingly, it ruled that the services performed by ARC should be assessed under section 44BB of the Act.
NF

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

September 2021
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
27282930