Case Law Details
ORDER
K.D. Ranjan, Accountant Member
This appeal by the assessee for the Assessment Year 2007-08 arises out of assessment order passed under sec. 143(3) read with sec. 144C(13) of the Income-tax Act, 1961 (the Act). The effective grounds of appeal raised by the assessee are reproduced as under:-
“1. The Ld. Assessing Officer has erred on facts and in law in dismissing the claim of the Appellant that its activity of seismic data acquisition and processing is an integral part of prospecting for mineral oil and therefore its income from such activities should be computed in accordance with the provisions of section 44BB of the Act. These services have a direct and definite bearing on exploration activities undertaken by petroleum and gas enterprises.
2. The Ld. Assessing Officer has erred on facts and in law in ignoring that the consideration arising under contracts for seismic data acquisition and processing services, which may range from six months to five years, do not qualify as ‘fee for technical services’ as defined in Explanation 2 to section 9(1)(vii) of the Act (herein after referred to as ‘fee for technical services’) as it falls within the exclusion of the definition of ‘fee for technical services’, being “consideration for any construction, assembly, mining or like project undertaken by the recipient”.
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