In Com E Ta X Ap P Ea L v. The Commissioner Of Income Tax, Dehradun

COURT NO.2 THE HIGH COURT OF UTTARANCHAL AT NAINITAL In com e Ta x Ap p ea l No.145 of 2005 Sedco Forex International. Drilling Inc. as agent of its employee Mr. Keith Stevens a company incorporated in the Republic of Panama having its registered office at No.8, Acquitino de la Guardia Street, City of Panama, Republic of Panama, Present address C/o A.F. Ferguson & Co. Maker Towers, Cuffe Parade, Mumbai …………. Appellant Versus 1. The Commissioner of income Tax, Dehradun having office at Subhash Road, Dehradun-248001 2. The Assistant Commissioner of Income-Tax, Special Range, Dehradun having office Special Range, Dehradun having office At Subhash Road, Dehradun-248001 ................ Respondents Ms. Menka Tripathi, Advocate for the appellant. Mr. Pitamber Maulekhi, Advocate for the respondents. Dated: March 23, 2006 Coram: Hon. P.C. Verma, J. Hon. B.C. Kandpal, J. today. Both the parties are ready to argue the matter 2. This appeal has been preferred against the consolidated order dated 28.01.2005 for the assessment year 1997-98, passed by the Income Tax Appellate Tribunal, (Bench ‘E’ New Delhi). year 1997-98, passed by the Income Tax Appellate 3. The learned counsel for the parties agree that the following only two questions of law arise in this appeal for the determination. They do not press the rest of the questions framed in the appeal:- 1. Whether the learned I.T.A.T. has erred in law in holding that the appellant has failed to satisfy the condition that ‘the remuneration is not deductible in computing the profits of an enterprise chargeable to tax in that other State’? 2. Whether the Tribunal was right in holding that off period salary was not taxable under section 9(1)(ii) read with the Explanation as it stood at the relevant time? 4. So far as the question No.1 is concerned, this question has already been decided by a Division Bench of this Court {in which one of us (P.C. Verma, J.) was a member} in case of "Sedco Forex International Inc. Vs. The So far as the question No.1 is concerned, this this Court {in which one of us (P.C. Verma, J.) was a Commissioner of Income Tax and another”, which was decided on 22.07.2005 in Income Tax Appeal No.165 of 2001. In the said judgment, the question framed in the said appeal was answered in favour of the Revenue. 5. The second question No1 has also been decided by Hon’ble Apex Court in Civil Appeal Nos.351-355 of 2005 "Sedco Forex International Drill Inc. and others Vs. Commissioner of Income Tax, Dehradun and Another, JT 2005(9) SC 639". In view of the aforesaid decision of the Hon'ble Apex Court, this question is answered in favour of the assessee. 6. In view of the above, we dispose of the appeal accordingly. (B.C. Kandpal, J.) (P.C. Verma, J.)