- (1.) Leave granted.
(2.) Respondent-Enron Oil & Gas India Ltd. ("EOGIL") is a company incorporated in Cayman Islands engaged in the business of oil exploration. In 1993, Government of India through Petroleum Ministry invited bids for development of Concessional Blocks. EOGIL offered its bid for the development of concessional blocks. A consortium of EOGIL with RIL was given the contract. Later on, ONGC joined. EOGIL with RIL and ONGC executed Production Sharing Contract (PSC) with Government of India. EOGIL was entitled to a participating interest of 30% in the rights and obligations arising under the PSC. RIL was also entitled to participating interest of 30%. ONGC was entitled to a participating interest of 40%. EOGIL was designated as the Operator under the said PSC.
(3.) Vide Notification No. 9997 dated 8.3.1996 under Section 293A of the Income Tax Act, 1961 ("1961 Act"), each co-venturer was liable to be assessed for his own share of income. They were not to be treated as an AOP.;