ORDER :- The short question for consideration in Writ Petitions Nos. 156 and 157 of 1966 is whether a ship chartered by a non-resident Time Charterer which carries goods shipped at a port in India, and of which the Time Charterer is disponee owner, is liable to pay tax under Section 172 of the Income Tax Act (hereinafter referred to as 'The Act'). The question lies in a narrow compass and is primarily one of correct construction requiring examination of the scheme of this section. I shall presently refer to this scheme but before I do so, it would be convenient to briefly recall the material facts giving rise to the petitions. The petitioner is Lima Leitao and Company Ltd. - a company incorporated under the relevant Portuguese Statute and the respondents are :- (1) the Union of India and (2) the Income-tax Officer, Panjim. The facts are substantially the same in these petitions except for some minor variations. I shall first discuss the merits of petition No. 156 before recording the conclusion in petition No. 157. The answer to the above question would also be the answer in petition No. 157.

2. The case of the petitioner company and the respondents is broadly set out in the corresp

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