2003 (3) TMI 26 - HC - Income Tax

Exemption under section 10(14) - Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the living allowance paid to foreign employees is exempt under section 10(14) of the Act? - The answer to the question referred stands concluded by the decision of the apex court in CIT v. Goslino Mario wherein it has been held that the rupee payment taken in India in the shape of daily allowances for the foreign technician is exempt under section 10(14) - In view of the said authoritative pronouncement, our answer to the question referred is in the affirmative, i.e., in favour of the assessee and against the Revenue

Summary

The High Court of Delhi ruled that living allowance paid to foreign employees is exempt under section 10(14) of the Income-tax Act, 1961. The decision was based on a previous apex court ruling in CIT v. Goslino Mario [2000] 241 ITR 312. The judgment was in favor of the assessee and against the Revenue. The reference was disposed of with no order as to costs.