Commissioner of Income Tax vs Oil and Natural Gas Commission

This is an application u/s 256(2) of the Income Tax Act, 1961, filed at the instance of the Revenue.

We have heard Sri R.K. Agarwal, who appears for the Department, and Sri R.P. Dubey, for the assessee. It has been brought to our notice that similar questions, as formulated in this application, were the subject-matter of consideration before this court in Income Tax Application No. 100 of 1989--CIT v. Atwood Oceanices International, S. A., as agent of Mr. G. Brain, wherein the Tribunal was directed to make reference to this court. Following the said order, we are of the view that the following question of law arises out of the order of the Income Tax Appellate Tribunal :

"Whether, on the facts and in the circumstances of the case, the income tax Appellate Tribunal was legally correct, to hold that the salary paid to the assessee for the off period outside India was not chargeable to the Indian Income Tax Act, 1922; in terms of Section 9(1)(ii) of the Income- tax Act, 1961 ?"

Accordingly, we direct the Income Tax Appellate Tribunal to draw up a statement of the case and to refer the aforesaid question for the opinion of this court. There shall be no order as to costs.