India's exploration and production major Oil & Natural Gas Corporation (ONGC) has filed a review petition before the committee on disputes on being denied entitlement to tax holiday under section 80 1 (B) of the Income Tax Act. ONGC in its return of income for AY 2002-03 and AY 2003-04, claimed certain deductions, which inter-alia included deduction under section 80-IB of the Income Tax Act, 1961 (Act) in respect of profits earned from the new undertakings that have commenced production of mineral oil after April 1, 1997. The deduction claimed amounted to Rs 828.06 crore for AY 2002-03 and Rs 2,439.05 crore for AY 2003-04. According to ONGC, the assessing officer made several additions in computing ONGC's taxable income while completing the assessment for these two years, including denial of benefit of tax holiday claim under section 80IB of the Act, which resulted in excess demand of tax of Rs 295.61 crore and Rs 896.35 crore for AY 2002-2003 and 2003-2004 respectively on account of this addition only. ONGC sources told FE, "It has filed a review petition and similar claims of GSPC, OIL, Niko Resources have been upheld by commissioner of income tax (CIT) (Appeals)." ONGC has also brought to the attention of the cabinet secretariat that 'assessee' and 'undertaking' entitled for tax holiday are two different terms under the Act. An 'assessee' is a natural person or a company or a firm while undertaking is a part of assessee which may be entitled for certain benefit under the Act. Conditions laid down for grant of a benefit u/s 80-IB(9) (like in any other sub section of 80-IA or 80-IB) are in respect of an undertaking and not for the company. – www.financialexpress.com