Income Tax Officer Spl. Ward Dehradun v. Reading & Bates Exploration Co

IN THE HIGH COURT OF UTTARANCHAL AT NAINITAL Income Tax Appeal No.521 of 2001 1.The Commissioner of Income Tax Dehradun Dehradun 2.Income Tax Officer Spl. Ward Dehradun ... Appellants Dehradun ... Appellants Versus Reading & Bates Exploration Co. As agent of Mr. R. S. Temple C/o Aurther Anderson & Co. 426, World Trade Centre Barakhamba Lane, New Delhi ... Respondent Mr. S.K. Posti, Advocate for the appellants. Coram: Hon. P.C. Verma, J. Hon. J.C.S. Rawat, J. JUDGMENT 1. This appeal is filed against the order dated 02.01.2001 passed by the Income Tax Appellate Tribunal, Delhi Bench ‘A’, Delhi in I.T.A. No. 5802/Del/1995. The dispute relates to the Assessment Year 1991-92. The assessee is Mr. R. S. Temple, represented by Reading & Bates Exploration Co. 2. The learned counsel for the parties agree that the following only two questions of law arise in this appeal for consideration:- a. “Whether on the facts and circumstances of the case, the ITAT 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?” ITAT 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?” b. “Whether on the facts and in the circumstances of the case, the ITAT was legally correct in holding that “Free Boarding Facility” provided by the employer on the board the rig in high seas cannot be constructed to be perquisite?” the ITAT was legally correct in holding that “Free Boarding Facility” provided by the employer on the board the rig in high seas cannot be constructed to be perquisite?” 3. So far as the question No.1 is concerned, this question has been decided by the Hon’ble Supreme Court in Sedco Forex International Drill Inc. & others Vs. Commissioner of Income Tax, Dehradun and another reported in J.T. 2005(9) S.C. p/639. In view of this decision, this question is answered in favour of the assessee. 4. In Commissioner of Income Tax and another Vs. SEDCO Forex International Drilling Co. Ltd. and connected cases reported in (2003) 264 ITR 320, a Division Bench of this Court held that the free boarding facility provided by the employer on the rig was not a perquisite under section 17(2)(iii) and that its value cannot be added to the income of the assessee. 5 In view of the above, we dispose of the appeal accordingly. Dated 16.12.2005 LSR (J.C.S. Rawat, J.) (P.C. Verma, J)