9911796707
TMI Blog1989 (10) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 10(6)(viia) of the IT Act. The two conditions laid down under s. 10(6)(viia) of the Act before claiming exemption are that the foreign individual was not resident in India in any of the four financial year immediately preceding the financial year in which he arrived in India, and (ii) his contract of service is approved by the Central Govt., before the commencement of the service or within one year of such commencement. 3. So far as the second condition is concerned, there is no dispute as the contract of service has been approved by the Central Govt. The ITO, however, held that the first condition of non-resident inIndiawas not fulfilled, inasmuch as the foreign individual was resident inIndiain the financial year 1979-80 relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... March, 1980, addressed to the Deptt. of Electronics with which the prescribed application for exemption was enclosed, M/s Ericcsson had clearly stated that the foreign technician came toIndiain June, 1979 and had been in employment of Ericcsson India Ltd. It was also stated in this letter that he was leavingIndiaon First of June, 1980 and would be back to join EriccssonIndiafrom1st Aug., 1980. The submission was that since all the facts were duly placed before the Govt. of India before grant of the approval, the approval was granted after waiving the condition set out in s. 10(6)(viia)(1). These submissions found favour with the CIT(A) who held that the conditions aforesaid should be deemed to have been waived by the Govt. of India in these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular he referred to last two paras but one of the letter dt.26th March, 1980and the relevant colunas in the application where specific request was made for exemption of income under s. 10(6)(viia) of the IT Act. It was specially stated that income-tax on salary/perquisites exceeding the exempted limit of Rs. 4,000 p.m. was to be paid by the company. Relying on these documents and the administrative approval granted by the Govt., he urged that the condition of non-residence inIndiafor one year was waived by the Deptt. of Electronics. He, therefore, supported the order of the CIT(A). Not only that, he placed on record a copy of the assessment order in the case of assessee for the asst. yr. 1980-81 passed by the ITO, Pvt. Salary Cir. IV, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cious waiver on the part of the Deptt. of Electronics in terms proviso below s. 10(6)(viia). We have looked into the application made by the assessee in the prescribed proforma. It is clearly mentioned therein that the assessee's salary/perquisites shall be exempt under s. 10(6)(viia) to the extent specified therein. There is no column in this application about the residential status of the assessee during the immediately preceding four financial years. This fact, therefore, could not have been specifically mentioned in the said application. To highlight the fact of residence of the assessee in India during the financial year 1979-80, M/s Ericcsson India Ltd. made special mention of this fact in their letter dt.26th March, 1980with which th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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