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2005 (7) TMI 68 - HC - Income TaxAppellant, a non-resident foreign company executed offshore drilling contracts in India and employed technicians to work in offshore oil rigs in India. Mr. Daniel Gates was such a technician employed by the appellant-company during the relevant previous year to work in the offshore oil rigs in India - "Whether, on the facts and circumstances of the case, the Tribunal erred in law in holding that the 'off-period' salary paid to the petitioner was liable to tax in India?" - In this case the contract provides for on period and off periods. - The payment of salary for the off period was income earned in India, i.e., for services rendered in India under section 9(1)(ii). We would like to point out that in this case the assessment records show that from the income of the Indian operations the salary in its entirety (including salary for the off period) has been paid by the employer company. This conduct shows the intention of the contracting parties. Hence, the entire salary for both the periods was taxable in India under section 9(1)(ii) – Thus, we answer this question in the negative, i.e., in favour of the Department and against the assessee.
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