Conditional Expenditures for the Development of Oil Industry

Conditional Expenditures for the Development of Oil Industry

NOTIFICATION NO. 21/2008, DATED 5-2-2008

In exercise of the powers conferred by clause (xii) of sub-section (1) of section 36 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, the Oil Industry Development Board established under section 3 of the Oil Industry (Development) Act, 1974 (47 of 1974) for the development of oil industry, subject to the following conditions, namely :—

(i) the expenditure, claimed as deductible under the Income-tax Act, 1961, is incurred for the objects and purposes authorised by the Oil Industry (Development) Act, 1974 (47 of 1974) ;

(ii) such expenditure is nor in the nature of capital expenditure ;

(iii) such expenditure is not eligible for deduction under any other provision of the Income-tax Act, 1961; and

(iv) a separate account of the expenditure claimed under the said clause is maintained by the Oil Industry Development Board.

2. This notification shall be applicable with effect from 1^st day of April, 2008, that is, for the assessment year 2008-09 and subsequent assessment years.