Applicability of section of 33ABA:
As per the provision of income tax, it is applicability to All assessee engaged in the business of Prospecting extraction production of natural gas or petroleum in India
The amount furnished in the deposit account or some specified account to utilize the amount for the particular period is permitted as a deduction under section 33ABA.
Deposit of amount with State Bank of India Account:
Deduction is allowed if some amt is deposited in SBI Site Restoration hs A/C) up to the end of the Previous Year.
Amount of Deduction Under Section 33ABA:
Deduction under section 33ABA allowed lower of the below
- Actual amount deposited with SBI (Or)
- 20% of the profit is calculated( Before this deduction )
Utilization of Amount:
Deduction is allowed if amount is utilized for business of Prospecting extraction production of natural gas or petroleum in India.
Consequences of Mis utilization Deposit Amount:
If deposited amount is Mis-utilized then deduction allowed earlier shall be withdrawn and it is taxable.
Some Important Points Under this Section 33ABA:
- If any amount is withdrawn from SBI should be utilized in the year of Withdrawal only, Otherwise such amount shall be taxable.
- When amount utilized [as per scheme] for revenue expenses then such expenses shall not be allowed as deduction under PGBP.
- When amount utilized (as per scheme] for purchase of any Plant and Machinery then depreciation shall be allowed on such Plant and Machinery.
If any amount is utilized for following purposes then deduction claimed earlier withdrawn:
For Plant and Machinery used in office premises or residential accommodation
For office appliances [not being computer]
Plant and Machinery on which 100% deduction already allowed under the head PGBP.
Where asset purchased is sold/ transferred before expiry of 8 years from end of previous year, in which it was acquired, such part of asset as is relatable to deduction allowed, shall be deemed to be income of P.Y. in year of sale / transfer of asset.
Restriction of 8 years shall not apply:-
- Where asset is sold/ transferred to Govt/ Local Authority/ Statutory corporation, Government Company.
- Transfer is by succession of firm to company whereby all assets and liabilities of firm are transferred to company and all shareholders of the company were partners of the firm immediately before succession.
