Sections 293A and 293B of Income Tax Act 1961: Mineral Oil Exemptions and Condonation of Delay
Sections 293A and 293B are miscellaneous enabling provisions of the Income Tax Act, 1961. Section 293A empowers the Central Government, where necessary or expedient in the public interest, to grant specified tax exemptions, rate reductions or other modifications for prescribed classes connected with prospecting for, extraction or production of mineral oils. Section 293B permits the Central Government or the Central Board of Direct Taxes, as applicable, to condone delay for sufficient cause where approval under the Act was required before a specified date.
Section 293A - Power to make exemption for mineral oil business participation
Meaning: Section 293A gives the Central Government a special notification-based power relating to income-tax treatment of specified persons connected with the business of prospecting for, extracting or producing mineral oils.
Section 293A(1) - Exemption, rate reduction or other modification
If the Central Government is satisfied that it is necessary or expedient in the public interest, it may by notification in the Official Gazette make:
- an exemption from income-tax;
- a reduction in the rate of income-tax; or
- another modification in respect of income-tax, including in relation to the whole or part of the income of a class covered by Section 293A(2), or the status in which the specified persons or their members are assessed on income from the business described in Section 293A(2)(a).
The statutory proviso permits a notification modifying status to be given effect from an assessment year beginning on or after 1 April 1993.
Section 293A(2) - Persons who may be covered
The classes of persons specified by the section are:
- persons with whom the Central Government has entered into agreements for association or participation of the Government, or a person authorised by it, in a business consisting of prospecting for, extraction or production of mineral oils;
- persons providing services or facilities, or supplying a ship, aircraft, machinery or plant by sale or hire, in connection with such mineral-oil business carried on by the Government or a person specified by the Government by Official Gazette notification; and
- employees of persons falling within clause (a) or clause (b).
Section 293A(3) - Notification to be laid before Parliament
Every notification issued under Section 293A must be laid before each House of Parliament.
Definitions under Section 293A
Mineral oil: For Section 293A, "mineral oil" includes petroleum and natural gas.
Status: "Status" means the category in which the assessee is assessed, such as an individual, Hindu undivided family and other applicable categories.
Section 293B - Power to condone delay in obtaining approval
Meaning: Section 293B provides a general statutory power for condoning delay where a provision of the Income Tax Act requires approval of the Central Government or the Board to be obtained before a specified date.
Where such approval is required before a specified date, the Central Government or, as the case may be, the Board may condone any delay in obtaining the approval where there is sufficient cause.
Essential requirements of Section 293B
The provision applies where the Income Tax Act itself requires approval of the Central Government or the Board before a specified date. The competent authority is the authority whose approval was required, and the statutory basis for condonation is sufficient cause for the delay.
Difference between Sections 293A and 293B
Section 293A is sector-specific and concerns notification-based tax treatment for specified classes associated with mineral-oil prospecting, extraction or production. Section 293B is procedural and concerns delay in obtaining an approval required under another provision of the Income Tax Act.
Related Income Tax provisions
Mineral-oil taxation may also involve provisions such as Section 42 and Section 44BB, depending on the facts and the assessee. Section 44BB contains a special provision for computing profits and gains of certain non-residents providing services or facilities, or supplying plant and machinery on hire, in connection with prospecting for or extraction or production of mineral oils.
Official legal references
For the authoritative statutory text, amendments and relevant notifications, consult the official Income Tax Department and India Code resources listed alongside this article.