As per sec 80IB profit from commercial production or refining mineral oil is eligible for claim deduction
Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
The assessee is an oil exploration company and is engaged in extraction and sale of crude oil from PY-3 Block in the Cauveri Offshore area. The assessee claimed that it was an industrial undertaking eligible for 100% deduction of its profits derived from the undertaking under section 80IB of the Act. The Assessing Officer, however, declined the deduction holding that extraction and sale of crude oil does not amount to commercial production or refining of mineral oil in order to make the appellant eligible for deduction under section 80IB(9) of the Act. On appeal, the first appellate authority confirmed the order passed by the Assessing Officer. Consequently, penalty proceedings under section 271(1)(c), were initiated by the Assessing Officer
Citation :
Income Tax Officer Ward-9(2)-1, Aayakar Bhavan 101, M.K. Road, Mumbai 400 020 ………….………. Appellant v/s M/s. Hindustan Oil Exploration Co. Ltd.Anand House, Khatwari Darbar Road Off Linking Road, Khar (West)Mumbai 400 052 PAN – AAACH1407P..…….………. Respondent
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CS Bijoy
Published in Income Tax
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