COMMISSIONER OF INCOME TAX Vs. OIL INDIA LTD

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, the following questions of law have been referred to this court for the assessment year 1971-72 :

(2.) The facts are that the original assessment of the company for the assessment year 1971-72 was made on March 21, 1974. In the course of the original assessment proceedings, the company had offered for addition in terms of Section 40(a)(v) of the Income-tax Act, 1961, a sum of Rs. 12,60,723 and the said sum was accordingly added by the Income-tax Officer while computing the assessee's income for the aforesaid assessment year. The computation of the aforesaid sum of Rs. 12,60,723 was given by the assessee in annexure II of the revised return filed by it in the following manner : <FRM>JUDGEMENT_366_ITR196_1992Html1.htm</FRM>

(3.) During the aforesaid previous year, the company had also transported the crude oil of the Oil and Natural Gas Commission (hereinafter referred to as "ONGC") and received payment from them for the said purpose. The company is extracting mineral oil and selling it and is thus entitled to the relief prescribed in Section 80-I of the Income-tax Act, 1961, with reference to its business of extracting mineral oil, etc., in terms of item 3 of the Sixth Schedule to the Income-tax Act, 1961. The assessee-company included in income derived by it from transporting the crude oil of ONGC through its pipelines also in its computation of income from the aforementioned business of extracting mineral oil, etc., and relief in terms of Section 80-I with regard to it also. The Income-tax Officer, in the original assessment order passed by him, accepted the assessee's aforementioned claim.