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The Gujarat High Court has struck down the Centre’s retrospective application of the definition of ‘undertakings’ and termed it unconstitutional, Niko Resources Ltd said on Monday.
In a statement issued by the company, it claimed that the Gujarat High Court had issued a favourable judgment on the retrospective application of the definition of undertakings and whether or not mineral oil includes natural gas for the purposes of the income tax holiday claims for the company’s fields in India.
As such, the company’s position that an undertaking can be defined as a well or cluster of wells has been upheld for the purposes of the tax holiday provisions in the Income Tax Act in India, it added.
Niko Resources mentioned that the Gujarat HC judgment stated that the Centre’s retrospective application of the definition of undertakings as “all blocks licensed under a single contract shall be treated as a single undertaking" is unconstitutional and struck it down.
The judgment also states that the term "mineral oil" for the purposes of the tax holiday provisions in the Income Tax Act in India takes within its purview both petroleum products and natural gas.
The High Court order can be challenged before the Supreme Court within 90 days from the date of the HC order.
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