ONGC Videsh Ltd. v. DCIT

DDIT, Dehradun vs. Bg Exploration & Production India Ltd., Mumbai

In the result ground No. 2 of the appeal of the assessee is dismissed

Bench: Shri I. C. Sudhir & Shri Prashant Maharishidy. Director Of Income Tax, Bg Exploration & Production India International Taxation, Ltd, Dehradun Bg House, Vs. Lake Boulevard Road, Hiranandani Business Park, Powai, Mumbai Pan: Aaace4569K (Appellant) (Respondent)

…o be satisfied i)Expense should be incurred wholly and exclusively for the purposes of the business;(ii) The expense should be revenue in nature. In this regard, reference may be made to the decision of the Delhi ITAT in the case of ONGC Videsh Ltd. vs. DCIT: 37 SOT 97 wherein the assessee was engaged in business of exploration and production of hydrocarbons, incurred expenditure on purchase and evaluation of seismic data of foreign blocks. It was held that expenditure so incurred was for furtherance of activities undertaken by it in normal course of business and, therefore, same was to be allowed as business exp…