ITAT Dehradun says Oil Rig Hiring Receipts Qualify for Presumptive Taxation Under Section 44BB

The ITAT Dehradun dismissed the Revenue's appeal against the allowance of presumptive taxation under Section 44BB to Saipem SpA, a non-resident company earning income from hiring oil rig vessels and equipment for a drilling contract. The Tribunal held that Section 44BB specifically covers non-residents providing services or facilities, or supplying plant and machinery on hire, for use in the prospecting, extraction or production of mineral oils. The fact that the equipment was hired to a non-Production Sharing Contract participant did not alter the statutory eligibility. The Tribunal also rejected the Revenue's retrospective application of the proviso to Section 44D and its challenge to Section 234B interest.