9911796707
TMI Blog1983 (11) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... o Mr. A.J.G. Ellis, who was an employee director of the assessee and was also an approved foreign technician under s. 10(6)(vii) of the IT. Act. 2. The ITO disallowed the claim of the assessee under s. 40(c). According to the assessee, s. 40A(5)b(ii) provides that there should be no disallowance in respect of the remuneration given to foreign technician as provided under s. 10(6)(vii). The ITO n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der s. 10(6)(vii).According to the assessee, the provision of s. 40A(5) would be applicable and, therefore, the ITO was not justified in add in back the above sum. The assessee relied on the decision in the case of M/s Graphite India Ltd. as decided by the Appellate Tribunal, 'E' Bench. Calcutta in ITA Nos. 1285 to 1287/Cal. 79 dt. 17th Sept. 1981, in which the decision was in favour of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. Accordingly the CIT (A) found that the ITO was justified in making the above disallowance. Hence these appeals before us. 4. The assessee's ld. counsel argues at length to stress the point of difference between ss. 40(c) and 40A(5), similar to those submissions made on behalf of M/s Graphite India Ltd. In fact, on behalf of the assessee, reliance is placed on the decision of the Tribunal, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia. Ltd. has elaborately discussed the implications involved in both the sections and came to the conclusion that the remuneration paid to the foreign technician was entitled to exemption under s. 10(6)(vii) and consequently the entire amount was allowable and cannot be restricted to Rs. 72,000 as has been done by the Revenue Authorities. In our opinion, the facts of the present case before us are ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
