SC issues notice to Essar Oil over tax benefit claims

The Supreme Court has issued notice to Essar Oil over its tax benefit claims arising out of the services provided by the company in oil and gas exploration projects in Oman and Qatar. A bench headed by Chief Justice SH Kapadia sought reply from Essar on a petition filed by the income tax department contending that income arising in Oman and Qatar is to be included in the total income of Essar, which is a resident in India for the purpose of tax rate, subject to the credit for taxes paid on the income arising in foreign countries.It said profits from the Oman and Qatar branches have to be included in the total income as the assessee being a resident of India has to be taxed on its entire income in India as per Section 5(1) of the Income Tax Act, 1961.

Source: Financial Express