TMI Blog1975 (7) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... eign technician, who first came to India in November, 1957, as an employee of Hochtief-Gammon (hereinafter referred to as " M/s. H. G. "). By their letter dated March 4, 1958, the Government of India in the Ministry of Commerce and Industry approved the assessee's appointment with M/s. H. G. for a period of three years, i.e., the financial year in which he came to India and the two following years. That period expired in November, 1960, but the assessee continued in service with M/s. H. G. for another year. With effect from October 17, 1961, he became an employee of Hochtief-Modern (hereinafter referred to as " M/s. H. M. "), a sister concern of M/s. H. G., and this arrangement was also approved by the Central Government by its letter dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his arrival in this country. Alternatively, it was contended that even if there was change in the employer, the concession contained in the latter part of section 10(6)(vii)(a)(ii) would be available. On behalf of the department it was pointed out that the assessee could not be said to have served the same employer and strong reliance was placed upon the letter dated March 6, 1962, from the Government of India, which specifically stated that the approval would not in any way entitle the assessee to the benefit of exemption from the payment of income-tax. The Tribunal did not accept the assessee's contention that the assessee was continuously under the same employer but it took the view that the concession provided for in the latter part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aries ' for services rendered as a technician in the employment of the Government or of a local authority or of any corporation set up under any special law or in any business carried on in India, if he was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India to the extent mentioned below-- (a) where his contract of service is approved by the Central Government before the commencement of his service... (i) in the case of a technician who has special knowledge and experience in industrial or business management techniques, such remuneration due to or received by him during the period of six months commencing from the date of his arrival in India; (ii) in the case of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to complete exemption conferred thereby in respect of remuneration received by him during the period of 36 months commencing from the date of his arrival in India. The question in dispute is whether during the 24 months which followed after the expiry of the initial period of 36 months the assessee as a foreign technician is entitled to the benefit of exemption granted by the latter part of section 10(6)(vii)(a)(ii). The contention of Mr. Joshi appearing for the revenue has been that under the latter part of section 10(6)(vii)(a)(ii) what is required is that such foreign technician should during the next 24 months continue to remain in employment in India after the expiry of the initial period of 36 months and the expression " conti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if after this period of thirty-six months, the technician's services are retained in India and the employer pays tax on the technician's salary, the amount paid as tax by the employer will not be treated as part of the employee's income." He laid considerable stress on the aspect which was made clear by the Finance Minister in his speach that the concession when it was sought to be extended for a further period of 24 months after the expiry of the initial period of 36 months, the same was intended to be extended only if " the technician's services are retained in India and the employer pays tax on the technician's salary ". He urged that the concept of retention of the technician's services spoken of by the Finance Minister was inserted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as meaning " continues to remain in the same employment in India ". In fact, it seems to us clear that even under the first part of section 10(6)(vii)(a)(ii) a foreign technician would be entitled to complete concession or exemption conferred thereby even if within the initial period of 36 months he were to change his employer more than once, the only condition being that his contracts of employment with such employers during that period should have been approved by the Central Government before he commences his service with each successive employer. The object of the enactment is to attract and make available to our industry the special knowledge and experience of foreign technicians and this object is sought to be achieved by conferring ..... X X X X Extracts X X X X X X X X Extracts X X X X
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