Sedco Forex International Drill. Inc. & ... vs Commissioner Of Income Tax, Dehradun & ...

The Supreme Court addressed the applicability of Section 9(1)(ii) of the Income Tax Act, 1961 concerning the taxation of salaries for field breaks outside India. The Court held that the salary for field breaks was not taxable as income earned in India, emphasizing that the amendments to Section 9(1)(ii) in 1999 did not retroactively apply to the assessment years in question (1992-93, 1993-94). The Court reversed the High Court's decision, affirming the Tribunal's ruling that the salary for off periods should not be included in the taxable income of the employees.