Deduction under s 43B , Business of exploration, etc, of mineral oils & Remission or cessation of liability

---------- Forwarded message ----------

From: CA Saiprasad Bagrecha <saiprasadbagrecha@gmail.com>
Date: Thu, Jul 21, 2011 at 9:29 AM

 Dear All,

Find enclosed text on Deduction under s 43B , Business of exploration, etc, of mineral oils & Remission or cessation of liability

 

• http://www.indiantaxhome.com/2011/07/deduction-under-s-43b.html

The benefit of s 43B(a) cannot be denied to the assessee on the ground that the excise duty was paid in advance in accordance with the mercantile system of accounting, as held by KolHC in Paharpur Cooling Towers Ltd v CIT — In favour of: The assessee; ITA No 2 of 2004.

 

 

• http://www.indiantaxhome.com/2011/07/business-of-exploration-etc-of-mineral.html

For the purposes of s 44BB, the vessels provided are covered under the definition of "plant" and the consideration received by the non-resident for supply of the vessels on hire, when used in prospecting for or extraction or production of oil and gas in India, is covered under s 44BB. The effective rate at which the tax has to be withheld from the payments would be 4.22%, as held by AAR in Bourbon Offshore Asia Pte Ltd, in Re; AAR No 937 of 2010.

•  http://www.indiantaxhome.com/2011/07/remission-or-cessation-of-liability.html

There has to be a positive act on the part of the creditor in the current year which would provide the benefit to the assessee by way of a remission. In absence of such act, it cannot be held that a liability has been remitted in favour of the assessee, as held by AhdTrib in ITO v Bhavesh Prints (P) Ltd — In favour of: The assessee; ITA No 1302 (Ahd) of 2010: (AY 2007–2008).