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TMI Blog1983 (2) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... her written reply dated 20-2-1979 stating as under : "(1) Shri Ajaz Ahmad Khan had been looking after the correspondence work, banking and other miscellaneous work regarding ports and shipment of carpets, etc. He is also an attorney of the firm authorised to visit all places and offices in connection with firm's business. (2) Carpet manufacturing is a highly technical matter and success or perfection in this trade cannot be achieved unless the persons looking after the job possess technical knowledge and experience about the whole process involved. Shri Ajaz Ahmad, it is claimed, possesses that technical and special knowledge and experience. (3) That the assessee's case is saved by the proviso to section 64(1)(ii) of the Act. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence that Shri Ajaz Ahmad had acquired the qualifications qua carpet trade by working as an apprentice under a master craftsman. Having regard to the nature of work looked into by Shri Ajaz Ahmad Khan, the AAC took the view that that work could have been done by any other person who had been working in any concern of carpet trade and that the nature of work looked into by him was not of a specialised nature pertaining to the carpet trade. Accordingly, he confirmed the order of the ITO. 4. The assessee, being aggrieved, has come up in appeal before us. Shri A.C. Sinha, the learned counsel for the assessee, argued that Shri Ajaz Ahmad Khan possessed technical qualifications and that the salary paid to him was attributable to the applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cates in evidence on the ground that they were not before the income-tax authorities and that they had been obtained even after the impugned order dated 17-7-1981 of the AAC and were not supported by any application justifying their reception in evidence. He also submitted that the fact that the AAC had taken a different view in the succeeding assessment year was not relevant. He also pointed out that the fact that Shri Ajaz Ahmad had been assessed on the said income of Rs. 30,000 in his own hands was not material. Reliance was also placed by him on another decision dated September 1979 of this Tribunal in the case of Smt. Leelawati [IT Appeal No. 574 (All.) of 1977-78] in which a view contrary to the view taken by the Tribunal in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ati it had been held by the Tribunal that though the term ' technical knowledge ' did not imply paper qualifications from the university or college but at the same time the ratio of the decision of Hon'ble Delhi High Court in the case of J.K. (Bombay) Ltd. v. CBDT [1979] 118 ITR 312 had to be followed. It was held in that case that the remuneration paid to Shri Jiya Lal related to managerial and commercial services rendered by him which were not entitled to the benefit of the proviso to section 64(1)(ii). In the case of Smt. Ashima Begum the Tribunal took the view that one may acquire technical or professional qualification even by being an apprentice to a master craftsman. On the facts of that case, it was held that Shri Farukh Ali had a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horised to visit all places and offices in connection with the firm's business. The nature of work done by Shri Ajaz Ahmad Khan was, therefore, not of any specialised nature so as to be called a work of a technical nature. It could have been done even by any other person who would have been doing this work for some time. As rightly observed by the learned AAC, there was no evidence to the effect that Shri Ajaz Ahmad had acquired any qualifications of carpet trade by working as an apprentice under a master craftsman or in the sense in which professional and technical qualifications had been construed in the decision of the Special Bench of the Tribunal in the case of Dr. J.N. Mokashi. We uphold the objection raised on behalf of the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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