105. Ascertainment of profits and income from business of petroleum exploitation under a Petroleum Resources Agreement

payments made to service sub-contracts for conducting petroleum operations;

one hundred per centum of the cost of acquisition of any plant, machinery or equipment used for the recovery of petroleum resources, in lieu of the allowance for depreciation or cost of renewal under section 25. Any proceeds realized on the sale of such assets shall be considered as a receipt from such business;

interest expenses;

royalty paid on petroleum resources recovered under any Petroleum Resources Agreement. However, this amount shall not be allowed as a deduction under section 32;

all expenses on the development and production of petroleum, including capital expenses, where a deduction under paragraph (b) above has not been granted;

in the year of first commercial production, all costs incurred by any contractor in the exploration for unsuccessful wells in exploration blocks under any

any costs incurred by any contractor in the exploration for unsuccessful wells in exploration blocks under any Petroleum Resources Agreement in any year of assessment, after the first commercial production.