Site restoration fund deduction links petroleum and natural gas businesses to audited deposits, withdrawal controls, and later tax recapture. Deduction is available to an assessee engaged in prospecting, extraction or production of petroleum or natural gas in India, where there is an agreement with the Central Government and the prescribed amount is deposited before year-end in the special account or site restoration account. The deduction is limited to the lower of the actual deposit, including interest credited to the account, and 20% of the business profits, and is allowed before set-off of brought-forward losses. The assessee must satisfy the prescribed audit requirements, and where the same amount has once been allowed as deduction, no further deduction is available in another year.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Site restoration fund deduction links petroleum and natural gas businesses to audited deposits, withdrawal controls, and later tax recapture.
Deduction is available to an assessee engaged in prospecting, extraction or production of petroleum or natural gas in India, where there is an agreement with the Central Government and the prescribed amount is deposited before year-end in the special account or site restoration account. The deduction is limited to the lower of the actual deposit, including interest credited to the account, and 20% of the business profits, and is allowed before set-off of brought-forward losses. The assessee must satisfy the prescribed audit requirements, and where the same amount has once been allowed as deduction, no further deduction is available in another year.
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