Where date is coming in oralce

Is oracle is reading date from OperatingSyatem?

I'm not sure what you mean by "Each & every operation within ORACLE is based on the timestamp" but that would seem to be incorrect.
Other than using the operating system clock to fulfill requests for SYSDATE, Oracle doesn't do much based on dates or times. If it did, Oracle would have significant problems when daylight savings time came around or when the OS clock was sync'd with a clock server. Internally, Oracle uses SCNs (system change numbers) to track changes. You may be able to get an approximate timestamp for a particular SCN, but it is the SCN that Oracle relies on and the SCN is just a sequential number.
Justin

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