CIT v. Enron Oil & Gas India Ltd.

305 ITR 75Supreme Court of India2008#5266 most cited

What is CIT v. Enron Oil & Gas India Ltd. authority for?

The Production Sharing Contract (PSC) is a self-contained code. Provisions of the Income-tax Act apply to the computation of income of the assessee under the PSC. Overhead charges incurred by the head office and charged to the assessee's profit and loss account are allowable as a deduction if incurred for the purpose of business.

22

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2018 to 2025.

Also referred to as

CIT v. Enron Oil & Gas India Ltd. · 305 ITR 75 · SC · Production Sharing Contract · PSC · fiscal legislation · computation of income · overhead expenses · deduction · business purpose

Sections most often in play

Section 115JAASection 143(3)Section 144CSection 144C(10)Section 234BSection 234DSection 32Section 42

Issues it is cited on

section 144(3)section 44csection 158asection 35(1)(ii)section 80ia(8)section 144c(10)section 42section 115jaasection 35(1)section 32(1)(iia)mat creditdepreciation on goodwill

Judgments citing CIT v. Enron Oil & Gas India Ltd.

JOSHI TECHNOLOGIES INTERNATIONAL INC INDIA PROJECTS,AHMEDABAD vs. THE ACIT (INT. TAXA-1), AHMEDABAD

In the result, all the three appeals filed by the assessee are partly allowed

ITA 81/AHD/2022[2018-19]Status: DisposedITAT Ahmedabad12 Dec 2025AY 2018-19

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleita Nos. 80, 81 & 244/Ahd/2022 (Assessment Years 2017-18, 2018-19 & 2019-20)

For Appellant: Shri Vishal Kalra, A.RFor Respondent: Shri Sher Singh, CIT-D.R
Section 143(3)Section 32Section 80I

…oss charged to the assessee. Therefore, 1% of the contract amount claimed as overhead expenses does not amount to double reimbursement to HO. The Ld. AR relied upon the decision of the Hon’ble Supreme Court in case of CIT vs. Enron Oil & Gas India Ltd. (2008) 305 ITR 75 (SC) wherein it was held that PSC is a code in itself. Moreover, as per Article 15 read with Appendix D to PSC, the assessee company is subject to all fiscal legislations in India and provisions of the Act shall apply to computation of income of the assessee. Therefore, overhead charges incurred by HO and charged to P&L of the assessee can be said…

JOSHI TECHNOLOGIES INTERNATIONAL INC INDIA PROJECTS,AHMEDABAD vs. THE ACIT (INT. TAXA-1), AHMEDABAD

In the result, all the three appeals filed by the assessee are partly allowed

ITA 80/AHD/2022[2017-18]Status: DisposedITAT Ahmedabad12 Dec 2025AY 2017-18

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleita Nos. 80, 81 & 244/Ahd/2022 (Assessment Years 2017-18, 2018-19 & 2019-20)

For Appellant: Shri Vishal Kalra, A.RFor Respondent: Shri Sher Singh, CIT-D.R
Section 143(3)Section 32Section 80I

…oss charged to the assessee. Therefore, 1% of the contract amount claimed as overhead expenses does not amount to double reimbursement to HO. The Ld. AR relied upon the decision of the Hon’ble Supreme Court in case of CIT vs. Enron Oil & Gas India Ltd. (2008) 305 ITR 75 (SC) wherein it was held that PSC is a code in itself. Moreover, as per Article 15 read with Appendix D to PSC, the assessee company is subject to all fiscal legislations in India and provisions of the Act shall apply to computation of income of the assessee. Therefore, overhead charges incurred by HO and charged to P&L of the assessee can be said…

JOSHI TECHNOLOGIES INTERNATIONAL INC INDIA PROJECTS,AHMEDABAD vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE(INT.TAXN.)-1, AHMEDABAD

In the result, all the three appeals filed by the assessee are partly allowed

ITA 244/AHD/2022[2019-20]Status: DisposedITAT Ahmedabad12 Dec 2025AY 2019-20

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleita Nos. 80, 81 & 244/Ahd/2022 (Assessment Years 2017-18, 2018-19 & 2019-20)

For Appellant: Shri Vishal Kalra, A.RFor Respondent: Shri Sher Singh, CIT-D.R
Section 143(3)Section 32Section 80I

…oss charged to the assessee. Therefore, 1% of the contract amount claimed as overhead expenses does not amount to double reimbursement to HO. The Ld. AR relied upon the decision of the Hon’ble Supreme Court in case of CIT vs. Enron Oil & Gas India Ltd. (2008) 305 ITR 75 (SC) wherein it was held that PSC is a code in itself. Moreover, as per Article 15 read with Appendix D to PSC, the assessee company is subject to all fiscal legislations in India and provisions of the Act shall apply to computation of income of the assessee. Therefore, overhead charges incurred by HO and charged to P&L of the assessee can be said…

DCIT (INTERNATIONAL TAXATION), DEHRADUN vs. M/S. BG EXPLORATION & PRODUCTION (INDIA) LTD., DEHRADUN

Appeal is dismissed

ITA 2134/DEL/2016[2006-07]Status: DisposedITAT Dehradun28 Apr 2025AY 2006-07

Bench: Sh. Satbeer Singh Godara & Sh. M. Balaganesh

For Appellant: Sh. Amit Arora, Adv. &For Respondent: Sh. Mithun Shete, Sr. DR
Section 143(3)Section 42(1)Section 42(1)(b)Section 44C

…IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH, DEHRADUN Before Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh, Accountant Member ITA No. 2134/Del./2016 : Asstt. Year : 2006-07 DCIT, Vs BG Exploration & Production (India) International Taxation, Ltd., C/o Nangia & Co., 3rd Floor, NCR Plaza, New Cantt. Circle-1, Dehradun Road, Dehradun (APPELLANT) (RESPONDENT) PAN No. AAACE4569K Assessee by: Sh. Amit Arora, Adv. & Sh. Vishal Mishra, Adv. Revenue by: Sh. Mithun Shete, Sr. DR Date of Hearing: 18.03.2025 Date of Pronouncement: 28.04.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This Reve…

ACIT,CIRCLE-19(1), NEW DELHI vs. ONGC VIDESH LIMITED, NEW DELHI

ITA 2185/DEL/2022[2016-17]Status: DisposedITAT Delhi31 May 2023AY 2016-17

Bench: Sh. N.K.Billaiya & Sh. Anubhav Sharmaacit, Vs. Ongc Videsh Limited Circle-19(1), Tower-B5, Nelson Mandela New Delhi Marg, Vasant Kinj, New Delhi Pan : Aaaco1230F (Appellant) (Respondent)

Section 143(3)Section 32Section 37(1)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. • Further, the depreciation claimed for A Y 2006-07 has been allowed by the CIT(A) and Revenue did…

ADDL. CIT,SPL RNAGE-7, NEW DELHI vs. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 2379/DEL/2019[2014-15]Status: DisposedITAT Delhi05 Sept 2022AY 2014-15
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

ADDL. CIT, SPECIAL RANGE-7, NEW DELHI vs. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 158/DEL/2018[2013-14]Status: DisposedITAT Delhi05 Sept 2022AY 2013-14
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

ADDL. CIT, SPECIAL RANGE-7, NEW DELHI vs. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 7435/DEL/2017[2011-12]Status: DisposedITAT Delhi05 Sept 2022AY 2011-12
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

ADDL. CIT, SPECIAL RANGE- 7, NEW DELHI vs. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 6281/DEL/2017[2012-13]Status: DisposedITAT Delhi05 Sept 2022AY 2012-13
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

ADDL. CIT, NEW DELHI vs. M/S ONGC VIDESH LTD.,, NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 2119/DEL/2017[2010-11]Status: DisposedITAT Delhi05 Sept 2022AY 2010-11
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

DCIT, NEW DELHI vs. M/S. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 3816/DEL/2015[2009-10]Status: DisposedITAT Delhi05 Sept 2022AY 2009-10
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

DCIT, NEW DELHI vs. M/S. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 3210/DEL/2014[2008-09]Status: DisposedITAT Delhi05 Sept 2022AY 2008-09
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

DCIT, NEW DELHI vs. M/S. ONGC VIDESH LTD., NEW DELHI

In the result, the appeals of the Revenue stand dismissed

ITA 3209/DEL/2014[2007-08]Status: DisposedITAT Delhi05 Sept 2022AY 2007-08
Section 32(1)(ii)Section 42

…made by the AO cannot be sustained. The appeal is allowed in this ground.” 13. Ld. DR for the Revenue reiterated the stand of the AO and also placed reliance on the decision of Hon’ble Supreme Court in the case of M/s. Enron Oil and Gas India Ltd. reported in 305 ITR 75. 14. Ld. counsel of the assessee made following submissions in this regard :- • Support equipment is a part of the block of assets. Depreciation on support equipment claimed by the assessee till A Y 2005-06 had been held allowable by the AO himself. 15 ITA No.3209/Del./2014 & Ors. • Further, the depreciation claimed for A Y 2006-07 has been allow…

ACIT, CIRCLE- 5(1), NEW DELHI vs. BUMI HIWAY (INDIA) LTD., NEW DELHI

In the result, all the appeals of the Revenue and assessee and cross objection of the assessee are allowed for the statistical purposes

ITA 601/DEL/2018[2013-14]Status: DisposedITAT Delhi10 Aug 2021AY 2013-14

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2012-13

…se, where assessee seeks deduction for foreign exchange loss in respect of conversion of different expenditure at a uniform rate, though it is not a foreign exchange fluctuation, the same shall be allowed as deduction - [CIT vs. Enron Oil & Gas Limited (2008) 305 ITR 75 (SC)]. 3.3.3 The appellant company has categorically submitted that it supervised the two projects (Jalandhar and Orissa) directly undertaken by its Malaysian AE i.e. M/s Bumi Hiway (M) n. Bhd (BHM) in India while it also supervised one road project (Vijayawada), awarded to it directly by M/s. Swama Tollway Private Limited (STPL). Regarding the p…

ACIT, CIRCLE- 5(1), NEW DELHI vs. BUMI HIWAY (INDIA) LTD., NEW DELHI

In the result, all the appeals of the Revenue and assessee and cross objection of the assessee are allowed for the statistical purposes

ITA 600/DEL/2018[2012-13]Status: DisposedITAT Delhi10 Aug 2021AY 2012-13

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2012-13

…se, where assessee seeks deduction for foreign exchange loss in respect of conversion of different expenditure at a uniform rate, though it is not a foreign exchange fluctuation, the same shall be allowed as deduction - [CIT vs. Enron Oil & Gas Limited (2008) 305 ITR 75 (SC)]. 3.3.3 The appellant company has categorically submitted that it supervised the two projects (Jalandhar and Orissa) directly undertaken by its Malaysian AE i.e. M/s Bumi Hiway (M) n. Bhd (BHM) in India while it also supervised one road project (Vijayawada), awarded to it directly by M/s. Swama Tollway Private Limited (STPL). Regarding the p…

BUMI HIWAY (INDIA) P.LTD,NEW DELHI vs. DCIT,CIRCLE-5(1), NEW DELHI

In the result, all the appeals of the Revenue and assessee and cross objection of the assessee are allowed for the statistical purposes

ITA 488/DEL/2018[2012-13]Status: DisposedITAT Delhi10 Aug 2021AY 2012-13

Bench: Shri O.P. Kant & Shri Kuldip Singh[Through Video Conferencing] Assessment Year: 2012-13

…se, where assessee seeks deduction for foreign exchange loss in respect of conversion of different expenditure at a uniform rate, though it is not a foreign exchange fluctuation, the same shall be allowed as deduction - [CIT vs. Enron Oil & Gas Limited (2008) 305 ITR 75 (SC)]. 3.3.3 The appellant company has categorically submitted that it supervised the two projects (Jalandhar and Orissa) directly undertaken by its Malaysian AE i.e. M/s Bumi Hiway (M) n. Bhd (BHM) in India while it also supervised one road project (Vijayawada), awarded to it directly by M/s. Swama Tollway Private Limited (STPL). Regarding the p…

DCIT (IT) 3(3)(1), MUMBAI vs. NIKO (NELPIO ) LTD, MUMBAI

In the result, the appeal filed by the Revenue stands dismissed

ITA 4809/MUM/2018[2014-15]Status: DisposedITAT Mumbai30 Jan 2020AY 2014-15
Section 1

…purposes. Accordingly, the gains or loss on account of such foreign exchange fluctuation/ translation is permitted by the Production Sharing Contract to be recognised in the accounts prepared there under. It is also seen that the Apex Court in the Enron case (305 ITR 75) had specifically allowed the foreign exchange losses and gains to be taken into account while preparing the financial statements of the business. Keeping in mind these relevant facts, taxation of foreign exchange gain under the head other sources was not required to be made in the facts of the present case. Therefore, on this issue, I follow the…

BG EXPLORATION & PRODUCTION INDIA LTD.,MUMBAI vs. DCIT, INTERNATIONAL TAXATION, CIRCLE-1, DEHRADUN

In the result, the appeals filed by the assessee for assessment years 2013-14 and 2014-15 are allowed as discussed hereinabove

ITA 7477/DEL/2018[2014-15]Status: DisposedITAT Delhi03 Apr 2019AY 2014-15

Bench: Sh. N. S. Saini & Smt. Beena A. Pillaiita No. 7476/Del/2018 : Asstt. Year : 2013-14

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Sanjay I. Bara, CIT DR
Section 143(3)

…an allowable deduction. He placed reliance is placed on the decision of the Uttarakhand High Court in CIT v. Enron Oil and Gas India Limited (305 ITR 68) which has further been affirmed by the Hon’ble Supreme Court in CIT v. Enron Oil and Gas India Limited) (305 ITR 75). ITA Nos. 7476 & 7477Del/2018 49 BG Exploration & Production India Ltd. 74. The ld. Counsel at the outset submitted that the issues stands covered by the order of this Tribunal for assessment year 2012-13 as under: “53. AO/DRP have made addition of Rs.63,65,958/- on account of difference in revenue as per Form 26AS and profit & loss account. I…

BG EXPLORATION & PRODUCTION INDIA LTD.,MUMBAI vs. DCIT, INTERNATIONAL TAXATION, CIRCLE-1, DEHRADUN

In the result, the appeals filed by the assessee for assessment years 2013-14 and 2014-15 are allowed as discussed hereinabove

ITA 7476/DEL/2018[2013-14]Status: DisposedITAT Delhi03 Apr 2019AY 2013-14

Bench: Sh. N. S. Saini & Smt. Beena A. Pillaiita No. 7476/Del/2018 : Asstt. Year : 2013-14

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. Sanjay I. Bara, CIT DR
Section 143(3)

…an allowable deduction. He placed reliance is placed on the decision of the Uttarakhand High Court in CIT v. Enron Oil and Gas India Limited (305 ITR 68) which has further been affirmed by the Hon’ble Supreme Court in CIT v. Enron Oil and Gas India Limited) (305 ITR 75). ITA Nos. 7476 & 7477Del/2018 49 BG Exploration & Production India Ltd. 74. The ld. Counsel at the outset submitted that the issues stands covered by the order of this Tribunal for assessment year 2012-13 as under: “53. AO/DRP have made addition of Rs.63,65,958/- on account of difference in revenue as per Form 26AS and profit & loss account. I…

ASST CIT (LTU) 2, MUMBAI vs. RELIANCE INDUSTRIES LTD, MUMBAI

ITA 1547/MUM/2016[2010-11]Status: DisposedITAT Mumbai28 Sept 2018AY 2010-11

Bench: S/Shri B.R.Baskaran (Am) & Amarjit Singh (Jm)

Section 43B

…on rendered by Ld CIT(A). 105. The Ld D.R submitted that the “Production Sharing Contract” shall override the provisions of Income tax Act in terms of sec.42 of the Act. This is so held by Hon’ble Supreme Court in the case of Enron Oil & Gas India Ltd (2008)(305 ITR 75). He submitted that the Article/clause 17.2.2 of the PSC provided for deduction of expenses relating to Abortive blocks against the profit from sale of mineral oil. Accordingly he submitted that the AO has rightly deducted Rs.2042.69 crores relating to Abortive blocks from the profit in order compute the deduction u/s 80IB(9) of the Act. 106. The…

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CIT v. Enron Oil & Gas India Ltd. (305 ITR 75) — Cited in 22 Judgments | BharatTax