ITA/45/2003 of THE COMMISSIONER OF INCOME TAX and ORS Vs READING and BATES EXPLORATION on 3 November 2003

1. The Commissioner of Income Tax, Dehradun 2. The Income Tax Officer, Special Ward, Dehradun ........................

Appellants

Versus

M/s Reading & Bates Exploration Co.,

As agent of Mr. G. Macfarlane,

New Delhi ........................

Respondent

Mr. S. K. Posti, Adovocate for appellants. None for the respondent.

Coram: Hon. S.H. Kapadia, C.J. Hon. M.M. Ghildival, J.

03.11.2003

Date:

PC:-

Affidavit providing services taken on record.

The matter is squarely covered by our decision dated 9th October 2003 in Income Tax Appeal No. 57 of 2002; The Commissioner of Income Tax, Dehradun & another V/s SEDCO Forex International Drilling Co. Ltd.

The questions referred to us for opinion under section 260A of the Income Tax Act are as follows:- QUESTIONS:

1. "Whether, the Tribunal was right in holding that "OFF Period Salary" was not taxable u/s 9/(1)(ii) read with the Explanation as it stood at the relevant time?" Period Salary" was not taxable u/s 9/(1)(ii) read with the Explanation as it stood at the relevant time?"

2. "Whether, the Tribunal was right in holding that free boarding facility provided by the employer on the rig is not a perquisite u/s 17(2)(iii)?" boarding facility provided by the employer on the rig is not a perquisite u/s 17(2)(iii)?"

ANSWER:

In view of our above judgment, we answer the first question in the negative that is in favour of the Department & against the assessee and the second question in the affirmative that is in favour of the assessee & against the Department.

Appeal disposed of. No Order as to costs.

(M.M. Ghildiyal, J.) (S.H. Kapadia, C.J.)

Gur