Income Tax Appeal v. The Commissioner Of Income Tax, Dehradun

IN THE HIGH COURT OF UTTARANCHAL AT NAINITAL Income Tax Appeal No. 156 of 2005 Sedco Forex International Drilling Inc. as agent of its employee Mr. Michael Kingston 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 consolidated order dated 28.01.2005 for the year 1998-99, passed by the Income Tax Tribunal, (Bench ‘E’ New Delhi). the assessment 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 questions framed in the appeal:- the 1. Whether the learned I.T.A.T. has erred in in holding that the appellant has failed satisfy the condition that ‘the remuneration not deductible in computing the profits of enterprise chargeable to tax in that State? law to is an other 2. that 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? this 4.So far as the question No. 1 is concerned, question has already been decided by Division Bench this Court {in Which one of us (P.C. Verma, J.) was member} in case of “Sedco Forex International Inc. Vs. Commissioner of Income Tax and another”, which decided on 22.7.2005 in Income Tax Appeal No. 165 2001. In the said judgment, the question framed in of a The was of the said appeal was answered in favour of the Revenue. 5. The second question has also been decided the Hon’ble Apex Court in Civil Appeal Nos. 351-355 2005 “Sedco Forex International Drill Inc. and Vs. Commissioner of Income Tax, Dehradun Another, JT 2005(9) SC 639”. In view of the decision of the Hon’ble Apex Court, this question answered in favour of the assessee. by of Others and aforesaid is 6. In view of the above, we dispose of the accordingly. appeal (B.C. Kandpal, J.) (P.C. Verma, J.)