TaxTMI 
TaxTMI 
1998 (5) TMI 407
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....(5B) of section 10 of the Income-tax Act is as under : "In the case of an individual who renders services as a technician in the employment (commencing from a date after the 31st day of March, 1993), of the Government or of a local authority or of any corporation set up under any special law or of any such institution or body established in India for carrying on scientific research as is approved for the purposes of this clause or sub-clause (viia) of clause (6) by the prescribed authority or in any business carried on in India and the individual was not resident in India in any of the four financial years immediately preceding the financial year in which he arrived in India and the tax on his income for such services chargeable under the head 'Salaries' is paid to the Central Government by the employer (which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in section 200 of the Companies Act, 1956 (1 of 1956)), the tax so paid by the employer for a period not exceeding forty-eight months commencing from the date of his arrival in India : Provided that the Central Government may, if it considers it necessary or expe....
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....t hereinabove. Admittedly, the petitioner does not fall in the second category which deals with agriculture, animal husbandry, dairy farming, deep sea fishing or ship building. The claim of the petitioner is that he comes in the first category which deals with "technician" having specialised knowledge and experience in mining. The petitioner is employed in connection with and is responsible for production of three operating oil and gas fields. Can this activity be treated as "mining" ? The Income-tax Act has not defined "mine" or "mining". The other tax Acts like the Wealth-tax Act, the Gift-tax Act, etc., have also not provided any definition of "mines". But if the provisions of the Income-tax Act are examined, it will be seen that special provisions have been made for petroleum and gas which have not been treated as a part of mines or mining. "Mineral" has not been used in a broad sense so as to include mineral oil and "mining" does not include exploration or extraction of oil. In fact, section 293A of the Income-tax Act specifically empowers the Central Government to exempt from taxation the income of a person or his employee engaged in the business of prospecting or extra....
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....cation in respect of income-tax to a person engaged in the business consisting of the prospecting for or extraction or production of mineral oil, or any employee of such person. "Mineral oil" has been defined by the Explanation to section 293A to include petroleum and natural gas. This is a specific provision dealing with concerns engaged in the business of prospecting for or extraction or production of "mineral oil" and also their employees. If any concern engaged in the business of prospecting for or extraction of mineral oil and their employees are covered by clause (5B) of section 10, then there was no necessity to make special provisions for persons participating in the business of prospecting for or extraction of mineral oil and their employees in section 293A. Therefore, it does not appear that "mining" in clause (5B) of section 10 includes extraction or exploration of oil. There are other provisions in the Income-tax Act which lend support to this view. Sections 28 to 44D deal with computation of profits and gains of business or profession. Section 44BB has made special provision for computing profits and gains of business of exploration, etc., of mineral oils. ....
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.... oil. It cannot also be said that the legislative practice in this country is to use "mineral" in this sense suggested by the applicant. We have earlier referred to the provisions of the Industries (Development and Regulation) Act. In the Constitution itself, in the Seventh Schedule "mines" and "minerals" have not been used as inclusive of oil-fields and mineral oil. Schedule VII, List I, entry 53, deals with regulation and development of oil-fields and mineral oil resources ; petroleum and petroleum products, and other liquids and substances declared by Parliament by law to be dangerously inflammable, whereas entry 54, List I, deals with regulation of mines and mineral development. The Mines Act has defined "mine" to mean and include oil wells, and "minerals" to include mineral oil. But that is a special definition for the purpose of that Act only. Having regard to the provisions of the Income-tax Act, we are of the view that "mining" has not been used in section 10(5B) in a broad sense to include prospecting for or extraction of mineral oil. Activities relating to extraction of petroleum and natural gas will not come within the ambit of clause (5B) of section 10. The nex....
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....itioner has got a degree in geology and he has wide experience in drilling and oil mining operations. He has worked in various capacities in various oil companies in the past where he rendered various technical duties like well-site supervisor. He has also worked as consultant/advisor, stall petroleum engineer, area petroleum drilling and completion engineer and field service supervisor also in different organisations. Now, he is graded as general managerIndia Operations. He is reporting to the CEO and the President of Niko Resources Ltd., and is responsible for the production operations of three operating oil and gas fields. In this managerial capacity he may be doing various administrative work also. But principally his responsibility is for production operation of the three operating oil and gas fields for which he had knowledge and experience. He has not been employed to do any construction work. He does not have any academic qualification nor any degree in civil or mechanical engineering nor has he undergone any training in that line. He has a degree in geology. It has not been stated what special knowledge he has acquired of any constructional operations. For the purpose of t....