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 1st day of April, 2008, that is, for the assessment year 2008-09 and subsequent assessment years.