S. H. KAPADIA, J.

( 1 ) LEAVE granted.

( 2 ) THESE civil appeals filed by the Department concern computation of the profits of the Indian permanent establishment (for short, "pe") of the Korean company, M/s. Hyundai Heavy Industries Co. Ltd. (for short, 'hhi' ). Assessee is a non-resident foreign company incorporated in South Korea. On 12-3-1985 it had entered into an agreement with Oil and Natural Gas Company (for short, 'ongc') for designing, fabrication, hook-up and commissioning of South bassein Field Central Complex Facilities in bombay High. In short, the contract was in two parts, one was for fabrication of platform and the other was installation and commissioning of the said platform in South bassein Field. In these civil appeals we are concerned with the assessment years 1987-88 and 1988-89. The assessee is incorporated under the laws of Republic of Korea. Its registered office is in Korea. As regards assessment year 1988-89, assessee filed its return of income on 3-8-1988. The return indicated 'nil' income. In response to notices under Section 143 (2) of the Income-tax Act, 1961 (for short, 'the Act') the assessee stated that it did not have a PE in India and, therefore