Related to sec 44bb of income tax act
This query is : Open
19 November 2013
whether refining of crude oil amounts to an activity of production of mineral oil in context of section 44bb of income tax act , 1961.if answer is affirmative please provide reasons.
19 November 2013
As per explanation to the Section Mineral Oil includes petroleum and natural gas.
.
Though, the name mineral oil by itself covers a wide range of oil varieties which further includes white oil, liquid paraffin, and liquid petroleum. Baby oil refers to a perfumed mineral oil.
(Source Wikipedia)
Most often, mineral oil is a liquid by-product of the distillation of petroleum to produce gasoline and other petroleum-based products from crude oil.
.
So after carrying on certain processes on the crude oil, mineral oil is obtained, which can be differentiated from its mother
substance easily from various angles like colour, odor, characteristics etc.
.
So, in my view , it can be said that for getting the mineral oils, crude oil is refined and it amounts to be a production activity.
.
.
Though, the name mineral oil by itself covers a wide range of oil varieties which further includes white oil, liquid paraffin, and liquid petroleum. Baby oil refers to a perfumed mineral oil.
(Source Wikipedia)
Most often, mineral oil is a liquid by-product of the distillation of petroleum to produce gasoline and other petroleum-based products from crude oil.
.
So after carrying on certain processes on the crude oil, mineral oil is obtained, which can be differentiated from its mother
substance easily from various angles like colour, odor, characteristics etc.
.
So, in my view , it can be said that for getting the mineral oils, crude oil is refined and it amounts to be a production activity.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ADVANCE PAYMENT OF ADVOCATE
- TDS on Consultancy- Non DTAA
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Depreciation of fixed assets- coop housing society in mumbai
- Management System (IMS)
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- TDS Return Q1 FY 2026-27
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- UNWANTED CREDIT BALANCE OF GST AS PER BOOKS
- DIN reactivation
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
