Assessee-company is  engaged in the business of providing Jack up drilling unit and platform well operations services. It entered into agreement with GSPC for providing Jack up drilling unit and platform well operations. During the year under consideration, it earned contractual income from GSPC under the contract but it did not offer its income to tax on ground that drilling operations were undertaken only for 119 days which were less than 183 days and, thus, assessee could not be said to have a PE in India. The Assessing Officer held  that drilling rig was brought into India in April and was undergoing necessary upgrades/repairs to meet the requirements of GSPL. Hence, rig being in India for more than 183 days, the requirements of treaty being in India for 183 days was satisfied and assessee was deemed to have a PE in India and activities carried out by assessee were covered under section 44BB. Commissioner (Appeals) decided issue in the favour of assessee. On appeal the Tribunal held that when rig had entered Indian waters and it was undergoing fabrication, upgradation and positioning for the drilling activity for GSPC, it can be said that the PE was there in connection with the exploration, exploitation or extraction of mineral oils, and thus, the day from which such fabrication, positioning and upgradation activity started, the assessee was having an establishment in connection with its services and activity for GSPC. and it was undergoing fabrication, upgradation and positioning for drilling activity to be included to compute period of 183 days to determine PE in India and since number of days of deployment of rig was more than 183 days, it could be said that PE was there in connection with exploration, exploitation or extraction of mineral oils. Affirmed the order of the Assessing Officer. High Court up held the order of the Tribunal.  (AY. 2011-12)