ONGC may gain today

Thebullishtrends: ONGC (CMP:Rs.830.55) As per the reports of ET, Public sector explorer ONGC is finding it hard to forego its claim of over Rs 3,000 crore as tax exemption. The oil majorONGC has again sought Cabinet secretariat’s approval to take a legal recourse before the income-tax appellate tribunal (ITAT). Earlier, the Cabinet secretariat had turned down the company’s request to permit it to challenge the I-T department for denying tax benefits.

This the matter relates to ONGC’s tax assessment for the year 2002-03 and 2003-04, wherein the I-T department rejected the company’s claim for tax deduction on commercial production of “mineral oils”. The committee on disputes (COD), which had to decide if the company could be allowed to move up in appeal, had concluded that there was “no question of law” involved that could necessitate a litigation before the ITAT. If this claim resolved amicably towards the
favour of ONGC then ONGC may benefit well.