Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 478 - HC - Income TaxValidity of deduction u/s 80IB(9) – assessee engaged on exploration activities carried by assessee - Whether the assessee was engaged in commercial production and refining of mineral oil or not – Extraction of oil amounts to result in any new product or commodity or not – Held that:- The Tribunal rightly held that there was a consortium of such Corporations, of which the present Assessee was a part - the activity of extraction could very well fall within the term "production" – in Commissioner of Income-tax v/s. Sesa Goa Ltd. [2004 (11) TMI 14 - SUPREME Court] it has been held that from the definition of the word 'production', it has to follow that mining activity for the purpose of mineral oil would come into within the ambit of the word 'production', since ore is "a thing", which is the result of human activity or effort - extraction and processing of iron ore amounts to "production" within the meaning of the word in section 32-A(2)(b)(iii) and consequently the Assessee was entitled to benefit of section 32-A(I) - If the consortium partner was undertaking an identical activity, and was allowed the deduction, the Tribunal’s order is upheld. Site restoration expenses or abandonment cost treated as an ascertained liability – Held that:- The site restoration expenses or abandonment cost was treated as an ascertained liability –it was deleted from the computation of book profit u/s 115JB - as per the terms and conditions of a Production sharing contract, it is under obligation that on expiry or termination of the contract to remove all its equipments and installations from the contract area as well as perform the necessary site restoration, operation or process -This is in accordance with the International Petroleum Practices - Such explanation of the Assessee was supported by independent finding and carried out by Institute of Oil and Gas Production Technology – thus, no substantial question of law arises for consideration – Decided against revenue.
|