TMI Blog2009 (7) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 10( 5B ) of the Income-tax Act. Aggrieved with the order of the Tribunal revenue carried the matter in appeal before the Hon ble High Court. The Hon ble High Court has set aside the order of Tribunal and remit the matter back for consideration afresh on the issue of grant of exemption under section 10( 5B ) of the Act. The order of the Hon ble High Court read as under : "Present: Ms. Rashmi Chopra for the appellant. Ms. Mahua Kalra with Mr. Aseem Mowar for the respondent. +ITA 419/2007 After hearing counsel for the parties at length, we feel that the Tribunal has not examined the nature of activities carried out by the assessee during his employment in India in detail. The exact nature of his activities would also tend to indicate whether the assessee was technically qualified to be called a technician within the meaning of the expression as used in section 10( 5B ) read with the Explanation thereto. We, therefore, set aside the impugned order and remit the matter to the Tribunal for consideration afresh on this issue. The parties are permitted to file any additional documents/affidavits in support of their contentions. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India. Ld. AR of the assessee produced the Bio-data of the assessee and affidavit of assessee s local employer to show that assessee has the requisite qualification and experience in the textile technology and working of yarn manufacturing. The details of job responsibility were also filed exhibiting his active involvement in technical work on behalf of the assessee-company. It was also contended by the assessee that he was involved-in setting up/implementation and training of Rieter products in the field of textile technology, understanding technical process of customer and qualifying the technical specifications relating to yarn manufacturing, scrutiny of tender documents from the customer and the production staff to meet the technical requirements for production of the desired items etc. The ld. First Appellate Authority has considered all these aspects and held that section 10( 5B ) was introduced to provide accele-rated growth to the Indian industry with the help of foreign/advanced technology in India. According to the ld. CIT(A) the Explanation appended to section 10( 5B ) provide the meaning of expression "technician". According to the meaning provided in this Explan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to the order of authority for advance ruling reported in Advance Ruling Petition No. 25 of 1996 1 (New Delhi) and in the case of Vance Robert Heffern v. CIT [2000] 241 ITR 299 2 . He preyed that assessee duly fulfilled all the requisite conditions enumerated in section 10( 5B ) of the Act and therefore ld. CIT(A) has rightly directed the Assessing Officer to grant exemption to the assessee. 9. We have duly considered the rival contention and gone through the records carefully. In the present appeal, we are required to silence the controversy between the parties with regard to the meaning and scope of expression "technician" employed in section 10( 5B ) of the Act, thus it is salutary upon us to take cognigence section 10( 5B ) which read as under: "In computing the total income of a previous year of any person, any income failing within any of the following clauses shall not be included: (5B) in the case of an individual who renders services as a technician in the employment (commencing from a date after the 31st day of March, 1993) of the Government or a local authority or of any corporation set up under any special law or of any such institution or bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technician" employed under section 10( 5B ) is to be construed in the tax administration by different authorities. In the judgment reported in Advance Ruling Petition No. 25 of 1996 case ( supra ) the authority while embarking upon the meaning of expression "technician" observed that the Explanation appended to section 10( 5B ) contemplate that "technician" means a person having specialized knowledge and experience in the particular fields provided in the Explanation . The words "knowledge and experience" according to AAR have not been defined in the Act and the various dictionaries meanings attached to these words were also not of much help as they refer to the general acquaintance with facts and personal exposure to events. The meaning of expression knowledge and experience for the purpose of section 10( 5B ) required to be construed is that a person having specialized knowledge and experience is known as "expert" in common parlance who can be considered as a "technician" provided his specialized knowledge and experience pertains to the prescribed spheres. The expression "expert" has been defined as "he who has some specialized, particular knowledge in relation to some speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ref. No. EO/96-1168 1st October, 1996 To Rieter India (P.) Ltd. 65 66, "A" Wing, Mittal Court, Nariman Point, Mumbai 400 021 Kind Attn. : Mr. Andreas Beising. Dear Sir, Ref: (1) Our Order No. 22/Order/96/1016 dated 9th September, 1996 for Three RSB-1 Draw Frames. (2) Our letter No. 1150 dated 28-9-1996. We are sending you revised Technological Figures for Order clarification sheets in duplicate for your doing the needful. We also request you to treat as cancelled earlier sheets which we have sent along with our letter No 1150 dated 28-9-1996. We are sorry for inconvenience caused to you in this matter. Thanking you, Yours faithfully, (B.B. Sharma) Chief Executive End : as above. Visitors Report Report Status: approved Approved by: Andreas Beising/VN Order List Date: 10-10-1996 These persons getting their copies via MIPS These persons getting their copies via Mall AMFR (Hardcopy) ARJS(Hardcopy) ARCO(Hardcopy) Please send your answers direct to Add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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