Amendments to section 44BB & 44DA are prospective and applies from A.Y. 2011-12

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IN THE ITAT DELHI

Schlumberger Asia Services Ltd.

v.

Additional Director of Income-tax, (International Tax)

IT Appeal No. 6063 (Delhi) of 2010 – Assessment Year 2007-08

Date of pronouncement – 18.05.2012

It has further been the contention of the revenue that the amendments vide Finance Act 2010, inserting mutually exclusionary clauses in s. 44BB and s.44DA are clarificatory, and hence are retrospective in operation, w.e.f. AY 2004-05. We find that this contention is not at all correct as the said provision of the Act cannot be said to be clarificatory and hence retrospective in operation. In this regard in the case of CGG Veritas Services SA (supra) comes to the rescue of the assessee. Furthermore, the Jurisdictional High Court in the case of the assessee itself in Schlumberger Asia Services Ltd. (supra) wherein it has been held that the amendment by Finance Act, 2010, excluding the application of Section 44BB in cases where Section 44DA applies, is prospective and applies from assessment year 2011-12.