Assessee is  an Engineer (Under Water Inspector) working at offshore fields. During year under consideration, it had received salary income from his Singapore based employer for work done in oil fields in Bay of Bengal in international water and had claimed same as exempt income. Assessing Officer held  that oil fields in Bay of Bengal was part of Indian Territory and therefore, work performed by assessee could not be termed as work outside Indian Territory and also held that   co-ordinates of oil fields in Bay of Bengal were situated within Exclusive Economic Zone of India and same was within part of “India” as defined in section 2(25A).  Accordingly, he had made an addition of same under section 5(2)(b) read with section 9(1)(ii). CIT(A) affirmed the order of the AO. On appeal the Tribunal held that   sub-section 9 of section 7 of Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 gave freedom of navigation to foreign ships and therefore employees working on such ships who were not carrying out activities as specified by said notification were not deemed to be working in India. On facts, salary income received by assessee from his foreign employer was exempt income because of his non-residential status as salary was earned for working in international waters. Addition is deleted.  (AY. 2018-19)