The Income Tax Appellate Tribunal (ITAT) delivered a decision on 12 October 2012 in the case of National Petroleum Construction Company v. ADIT (ITA No. 5168/Del/2010) where it held that a contract could be divided into offshore and onshore components, and that the offshore components were not taxable in India.
(a) Facts. The Taxpayer (i.e. National Petroleum Construction Company) was a resident of the United Arab Emirates (UAE) which had been granted a turnkey contract by an I…