READING and BATES DRILINGCO.AGENT MR.GIOVANNI SPADER vs. THE COMMISSIONER OF INCOME TAX

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ITA/117/2004HC UttarakhandUKHC01003857200428 September 20052 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal, following its own previous judgment in Commissioner of Income Tax vs. Sedco Forex International Drilling Co. Ltd. and connected cases. In that precedent, a Division Bench of the High Court had held that salary paid for an 'off period' constituted income earned in India, specifically for services rendered in India, and was therefore taxable under Section 9(1)(ii) of the Income Tax Act, 1961. The High Court found that the present case was on similar facts and circumstances, leading to the dismissal of the appeal. No issues were left undecided.

What were the facts?

The appeal was filed by M/s Reading & Bates Drilling Co., acting as the agent of Mr. Giovanni Spader, against an order dated 26.03.2004 passed by the Income Tax Appellate Tribunal, Delhi Bench ‘F’. The dispute pertains to the Assessment Year 1997-1998. The appellant is the assessee, and the respondent is the Commissioner of Income Tax, Dehradun. The core of the dispute revolves around the taxability of salary paid to the assessee during an 'off period'. The procedural history indicates that the appeal was heard by the High Court of Uttaranchal at Nainital.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Tribunal erred in law in holding that the “off period” salary paid to the appellant was liable to tax in India, concerning Section 9(1)(ii) of the Income Tax Act, 1961. Assessee's Contention: The judgment does not record any specific arguments made by the assessee. The appeal is presented as a question of law. Revenue's Contention: The judgment does not record any specific arguments made by the revenue. The revenue is represented by counsel, but their arguments are not detailed in the provided text.

Which sections of the Income-tax Act were involved?

Section 9(1)(ii)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF UTTARANCHAL AT NAINITAL Income Tax Appeal No. 117 of 2004 M/s Reading & Bates Drilling Co. as agent of Mr. Giovanni Spader C/o Nangia & Company, B-57, Soami Nagar, New Delhi- 110 017 … Appellant Versus The Commissioner of Income Tax, Dehradun. … Respondent Miss. Krishi Shukla / Dr. Udyog Shukla, Advocates for the appellant. Mr. S.K.Posti, Advocate for the respondent. Coram: Hon. Cyriac Joseph, C.J. Hon. J.C.S. Rawat, J.

JUDGMENT

CYRIAC JOSEPH, C.J. (Oral)

1.

This appeal is filed against the order dated 26.03.2004 passed by the Income Tax Appellate Tribunal, Delhi Bench ‘F’, New Delhi in I.T.A. No. 1523 /Del / 2000. The appellant is the assessee. The dispute relates to the Assessment Year 1997-1998. 2. The substantial questions of law raised in the appeal is as follows:

Whether on the facts and circumstances of the case, the Tribunal erred in law in holding that the “off period” salary paid to the appellant was liable to tax in India.

3.

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 payment of salary for “off period” was income earned in India, i.e., for services rendered in India

under Section 9(1)(ii) and that “off period salary” was taxable under section 9(1)(ii) of the Income Tax Act, 1961. 4. Following the above mentioned judgment of a Division Bench of this Court, this appeal is dismissed.

(J.C.S. Rawat, J.) (Cyriac Joseph, C.J.)

28.09.

2005

28.09.

2005 A

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