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2014 (3) TMI 588 - HC - Income TaxExemption u/s 10(15) - Nature of undertaking - Whether the petitioner was an undertaking which was engaged in mining – Held that:- The words “engaged” and “mining” have not been defined in the Act and have to be read and interpreted as they are understood in normal parlance - The word “mining” in common parlance means working on mines for ores, oil and other minerals - extracting mineral oil could be covered within the meaning of mining activities - An industrial undertaking having oil fields and excavating or winning oil from oil fields would be engaged in mining. The expression used in the Explanation is that a person who was “engaged in mining” was treated as an industrial undertaking for the purpose of clause (c) to Section 10(15)(iv) of the Act - It is necessary and important to give wide interpretation while interpreting the expression “engaged in ….. mining” as it would further the legislative intent and the purpose behind enacting Section 10(15)(iv)(c) of the Act - A word or expression used in a legislative provision should be interpreted in the context in which the expression or the word is used to be in consonance and to further the legislative intent - Mining itself is complex and capital intensive and may require inter play and activities by several persons which may be involved in different parts/aspects of mining and accordingly paid for the part played or activities undertaken by them – thus, the undertaking would be “engaged in mining”. Nature of Activity undertaken - whether the activities of the petitioner could be considered to be an integral part of mining – Held that:- The petitioner had purchased or acquired capital equipment in the form of work over rigs and for this purpose had obtained loan from State Bank of India, Singapore in foreign currency and Indian rupees - the expression “engaged in mining” would not only include the actual winning or extraction of minerals or oils but also activities which are an integral part of mining – Decided in favour of Assessee. Relief of TDS – Held that:- Petitioner contended that they have already paid tax at source - The petitioner claims that no certificate for tax deducted in Form 16A was issued to the State Bank of India, Singapore - Petitioner in terms of the interim order has given an undertaking that in case the writ petition stands dismissed they would be liable to pay tax due on subsequent installments with interest as per the Act – revenue is directed to verify the assessments made in the case of State Bank of India, Singapore and in case the Bank has not taken credit of the tax paid at source, the amount will be refunded to the petitioner with interest @ 8% p.a. from the date of filing of the writ petition till payment – Decided partly in favour of Assessee.
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