Related to sec 44bb of income tax act
This query is : Open
sai krishna
(Querist)
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.
CA PARAS BAFNA
(Expert)
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.
.
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