2005 (4) TMI 36

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....ontinental shelf of India was applicable for the accounting period commencing from April 1, 1983? 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?" Briefly stated the facts giving rise to the present reference are as under: The reference relates to the assessment years 1982-83 and 1983-84. The respondent-assessee is an employee of M/s. Atwood Oceanics International, S.A., a non-resident company, which entered into a contract with Oil and Natural Gas Commi....

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.... the continental shelf for the accounting period relevant to the assessment year 1983-84 would be subject to the Act. The matter went to the Tribunal in second appeal at the instance of the assessee. The Tribunal following its earlier orders in respect of similarly situated assessees set aside the assessment order on the finding that the notification of the Government of India dated March 31, 1983, issued under section 6(6) read with section 7(7) of the Territorial Zones Act, 1976, will apply only to such incomes earned on or after April 1, 1983. Heard learned standing counsel for the Revenue. Nobody has appeared on behalf of the respondent-assessee. Learned standing counsel for the Department submitted that in view of the notificatio....

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.... activities referred to in clause (a) or clause (b). Explanation.- For the purpose of this notification 'mineral oil' includes petroleum and natural gas." We find that the aforesaid notification has been the subject-matter of consideration by different High Courts. In McDermott International Inc. (No. 1) v. Union of India [1988] 173 ITR 155, the Bombay High Court has held as follows: " .... that when it was sought to tax income arising in the previous year relevant to the assessment year from which the Income-tax Act was made applicable, an express provision had to be made to cover income accruing in the previous year. In the absence of such an express provision, income accruing in an accounting year in which the Income-tax Act was....