SC: Applicability of sec 44BB is to be decided w.r.t. the “Pith and substance” of the contract
- If the pith and substance of the contracts/agreements is inextricably connected with prospecting, extraction or production of mineral oil , the payments made by ONGC and received by the non-resident assessees or foreign companies under the said contracts is more appropriately assessable under the provisions of Section 44BB and not Section 44D of the Act
SUPREME COURT OF INDIA
Oil & Natural Gas Corporation Ltd. v. Commissioner of Income-tax