S. B. SINHA, J.

( 1 ) LEAVE granted.

( 2 ) INTERPRETATION and/or application of the provisions of Section 115wb of the Income Tax Act, 1961 (for short, 'the Act') providing for imposition of tax on 'fringe benefits' is in question herein.

( 3 ) BEFORE embarking upon the said question, however, we may notice the basic fact of the matter. Appellant is incorporated under the laws of the Commonwealth of australia. It is engaged in the business of providing Mobile Offshore drilling Rig (MODR) along with crew on a day rate charter hire basis to drill offshore wells. The MODR operates offshore (upto 200 nautical miles off the coast of India ). Allegedly, having regard to the harsh working environment and purported to be in line with global practices typical to such industry, the employees who may be residents of various countries including australia, USA, UK, France etc. work on the MODR on a 'commuter basis'. They come to India, stay in the Rig for 28 days and go back to their own country being their place of residence for a further period of 28 days. The crew or the employees are transported from their home country to the modr in two laps :

- first is from the nearest designated base city