COMMISSIONER OF INCOME TAX Vs. D PLAYFORD

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, New Delhi has referred the following two questions of law under Section 256 (1) of the Income Tax Act, 1961 (here in after referred to as the Act) for opinion to this Court:- 1." Whether the Tribunal was right in law in holding that the notification issued on 31st March, 1983 which extended the applicability of the Income-tax Act to the Continental Shelf of India was applicable for the accounting period commencing from 1.4.83?

(2.) Whether the Tribunal was right in law in holding that the notification of extension of the Income-tax Act to the Continental Shelf not being applicable for the assessment year 1983-84, the salary paid to the assessee for the lay-off period outside India was not chargeable Under Section 9 (1) (ii) of the Income tax Act, 1961?" 2. Briefly stated the facts giving rise to the present reference is as under: The reference relates to the assessment years 1982-83 to 1983-84.

(3.) The respondent assessee is an employee of M/s. Atwood Oceanics International, S.A., a nonresident Company which entered into a contract with Oil & Natural Gas Commission, a Govt. of India Undertaking in connection with extraction of oil, gas etc. from the oil rigs in the Bombay High Seas. The contract of employment of the assessee with the aforesaid non-resident Company provided that the employee shall after working for 28 days in the oil rig get lay off period of 28 days. The salary was to be paid to such employees by the Indian Company namely O.N.G.C. for the day they worked in the oil rig and also for the days they were given lay off.