Special Provision for deduction in case of business for prospecting etc. for mineral oil - (New) section 54 / (Old) Section 42

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....l oils where the following conditions are fulfilled:- • (a) the Central Government has entered into an agreement with the assessee; • (b) such agreement is entered for association or participation of the Central Government or any person authorised by it; and • (c) such agreement is laid before each House of Parliament. Types of allowable deductions [ Section 54(3) ] • (a) Pre-commercial production stage • for the period before the beginning of commercial production, expenditure towards infructuous or abortive exploration incurred in respect of any surrendered area • (b) Post-commencement of production • for the period after the commencement of comm....

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....rred; (Amount of expenditure incurred remaining unallowed Minus Proceeds of the transfer) (b) Profit situation • (i) but less than B, then (A-C) shall be the profit chargeable under the head "Profits and gains of business or profession" for the tax year in which such transfer takes place; • (ii) in any other case, only (B-C) shall be the profit chargeable under the said head for the tax year in which such transfer takes place; and • (iii) no deduction shall be allowed for the expenditure incurred remaining unallowed in the tax year in which such transfer takes place or any subsequent tax year, where,-- • A = proceeds of the transfer (so far as they consist of capital su....