TMI Blog1972 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Appellate Tribunal is correct in law in holding that the skipper of the fishing trawler is a ' technician ' as laid down in the Explanation to section 10(6)(vii) of the Income-tax Act, 1961 ? " The assessee is one Sri. Mosanobu Nakai, the skipper of a fishing trawler, a specialist in the field of fishing by using deep-sea going trawlers, a Japanese, whose services have been obtained by the Blue Bay Fisheries who have been assessed for and on behalf of the said Nakai for the year 1966-67. Nakai was being paid reasonably high salary, Rs. 3,000 per month, with other facilities as well and it has been assumed in the proceedings before the income-tax authorities that the remuneration that he received during the entire accounting peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he technician must have special knowledge and experience in industrial or business management techniques ". The section itself having limited the nature of the techniques or having qualified the word technician " by the introduction of the words following technician who has " special knowledge and experience in industrial or business management techniques ", it is clear that it is only the second limb of the Explanation that we have read that falls for consideration in this case and not the first. This is admitted before us. The whole case, therefore, turned on the interpretation to be placed on the words " industrial or business management techniques " occurring in clause (ii) in the Explanation. On behalf of the assessee, it was contend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the things and the scheme of the Act, we find it difficult to give to the expression. For instance, the first limb itself does not take in all technicians who may be helpful to the industry and who possessed knowledge and experience. It is only technicians having knowledge and experience in " constructional or manufacturing operations, or in mining or in the generation or distribution of electricity or any other form of power " that are included in the first limb of the Explanation. It is easy to conceive of so many other technicians who are as highly skilled and as highly experienced in other branches than constructional or manufacturing and distribution of power who are excluded, from the first limb. This clearly shows that the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is technicians who can help in so running an industry or business that fall within the second limb of the Explanation. The Tribunal dealt with the question thus in paragraphs 2, 3 and 4 of its order. 2. The assessee appealed to the Appellate Assistant Commissioner and contended that the Explanation to section 10(6)(vii) applied to the appointment in question and the salary paid to the skipper had to be excluded in computing the total income. The Appellate Assistant Commissioner held that the word ' technician ' was wide enough to include a skipper performing specialised duties relating to fishing industry. He accordingly allowed the appeal and held that the salary earned by the skipper was exempt from tax. 3. The authorised repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nowledge or practical experience he would be regarded as a technician.' The assessee's representative also drew our attention to the condition imposed by them on the skipper that he will have to undertake the responsibility of training an Indian to qualify himself to be a competent skipper during the period of his service. He argued that in the background of these facts, the foreign skipper was really a technician having specialised knowledge and experience in industrial management techniques. 4. After having heard both sides, we feel that the decision of the Appellate Assistant Commissioner in this case is correct. It will be recognised on all hands that mechanised deep sea fishing employing the latest methods is an industry capable of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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