 "Tripods of television crew stand in front of the Indian Supreme Court building in New Delhi")
The Supreme Court last week dismissed about 60 appeals by foreign oil exploration firms and confirmed that they are liable to pay income tax on the amounts received by them in India as mobilisation charges. The judgment in the case, Sedco Forex International vs commissioner of income tax, turned on the interpretation of Section 44BB of the Income-Tax Act. Where the assessee is a non-resident engaged in the business of exploration, a special mechanism is provided for computation of profits and gains.
The provision gives a choice to such non-resident firms to opt for a computation formula provided under Section 44BB
