TMI Blog2003 (10) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... partment. - - - - - Dated:- 16-10-2003 - Judge(s) : S. H. KAPADIA., M. M. GHILDIYAL. JUDGMENT The judgment of the court was delivered by S. H. KAPADIA C. J.-This group of appeals involve a common question of law and fact and therefore they are disposed of by this common judgment. For the sake of clarity we hereby mention the facts in Income-tax Appeal No. 438 of 2001. Facts: Atwood Oceanics International Company was the representative assessee of its employee-Gene Little who was employed during the accounting year ending March 31, 1983, relevant to the assessment year 1983-84, on off shore drilling rig operating in Bombay High for oil exploration in the Continental Shelf of India for ONGC. The return of income was filed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notification issued by the Government of India on March 31, 1983, under section 6(6) and under section 7(7) of the Territorial Waters, Continental Shelf and Exclusive Economic Zone Act, 1976, the Income-tax Act was made applicable to the exclusive economic zone with effect from April 1, 1983. He contended that by virtue of article 297 of the Constitution, the continental shelf was a part of India even before the above notification and therefore, the salary earned by the assessee (employee) before April 1, 1983, working on the rig located beyond 12 nautical miles was taxable during the assessment year 1983-84. He relied upon various judgments of the Supreme Court and the High Courts in support of his contention. None appeared for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zone. It is important to note that in this case we are concerned with the concept of taxable territory of India under the Income-tax Act, 1961. This is important as it is only by virtue of notification dated March 31, 1983, that the continental shelf and the exclusive economic zone became part of the taxable territory with effect from April 1, 1983. Therefore, the said tax could not have been levied on the income which accrued in the accounting year ending March 31, 1983, when the territory in which it accrued was not the taxable territory to which the Income-tax Act applied. To levy the tax, the income must accrue in the territory to which the Income-tax Act applies. In this case article 297 of the Constitution is not relevant. For the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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