Section 44BB :letting out of equipment and rendering of services to oil exploration co. is taxable under sec. 44BB

Income from letting out of equipment and rendering of services to oil exploration co. is taxable under sec. 44BB

[2015] 57 taxmann.com 191 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'A'

Additional Director of Income-tax, (International Taxation), Dehradun

v.

Baker Hughes Singapore Pte Ltd

Section 44BB, read with section 44DA, of the Income-tax Act, 1961 - Non-residents - Mineral oil, business of prospecting/exploration of (Section 44BB v. section 44DA) - Assessment year 2004-05 - Assessee, a foreign company, earned income by giving equipments on hire and rendering services to entities engaged in oil exploration work - Assessing Officer held said income to be taxable as normal business income under section 44DA - Various co-ordinates benches had considered similar issue and held said income to be taxable under section 44BB - Whether therefore, income of assessee was liable to taxed on presumptive basis at 10 per cent under section 44BB - Held, yes [Para 5] [In favour of assessee]