Section 44BB:
Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
1(1) Notwithstanding anything to the contrary contained in sections 28
to 41 and sections 43 and 43A, 2
in the case of an assessee, being a non-resident, engaged in the business
of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to
be used, in the prospecting for, or extraction or production of, mineral oils, a sum equal to ten per cent of
the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of
such business chargeable to tax under the head “Profits and gains of business or profession”:
Provided that this sub-section shall not apply in a case where the provisions of section 42 or
section 44D or 3
section 44DA or section 115A or section 293A apply for the purposes of computing
profits or gains or any other income referred to in those sections.
(2) The amounts referred to in sub-section (1) shall be the following, namely:—
(a) the amount paid or payable (whether in or out of India) to the assessee or to any person on his
behalf on account of the provision of services and facilities in connection with, or supply of plant and
machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral
oils in India; and
(b) the amount received or deemed to be received in India by or on behalf of the assessee on
account of the provision of services and facilities in connection with, or supply of plant and
machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral
oils outside India.
4
(3) Notwithstanding anything contained in sub-section (1), an assessee may claim lower profits and
gains than the profits and gains specified in that sub-section, if he keeps and maintains such books of
account and other documents as required under sub-section (2) of section 44AA and gets his accounts
audited and furnishes a report of such audit as required under section 44AB, and thereupon the Assessing
Officer shall proceed to make an assessment of the total income or loss of the assessee under
sub-section (3) of section 143 and determine the sum payable by, or refundable to, the assessee.
Explanation.—For the purposes of this section,—
(i) “plant” includes ships, aircraft, vehicles, drilling units, scientific apparatus and equipment,
used for the purposes of the said business;
(ii) “mineral oil” includes petroleum and natural gas.
Notes:
1. Ins. by Act 11 of 1987, s. 11 (w.e.f. 1-4-1983).
2. Subs. by Act 26 of 1988, s. 16, for “in the case of an assessee” (w.e.f. 1-4-1983).
3. Ins. by Act 14 of 2010, s. 16 (w.e.f. 1-4-2011).
4. Ins. by Act 32 of 2003, s. 25 (w.e.f. 1-4-2004).