Easy Office
LCI Learning

Related to sec 44bb of income tax act


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.
.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries