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TMI Blog1993 (4) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... n 40(c)(iii) were rightly invoked in relation to the remuneration of the technical director of the assessee-company - Provision limiting allowance of perquisite are not applicable - - - - - Dated:- 6-4-1993 - B. P. JEEVAN REDDY. and N. VENKATACHALA. JUDGMENT In this appeal preferred against the judgment of the Madras High Court ( [1979] 118 ITR 820), the words " whose income chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of Rs. 15,376. The Appellate Assistant Commissioner, however, allowed the assessee's appeal holding that inasmuch as the salary of the foreign technical director was exempt from tax under section 10(6)(vii), the provision contained in section 40(c)(iii) was not applicable. The appeal filed by the Revenue was allowed by the Tribunal. The Tribunal opined that merely because the salary is exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoked for the assessment year 1965-66 in relation to the remuneration of the technical director of the assessee-company ? " Section 40(c)(iii), as applicable to the assessment year 1965-66, read as follows : " 40. Notwithstanding anything to the contrary in sections 30 to 39, the following amounts shall not be deducted in computing the income chargeable under the head 'Profits and gains of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head 'Salaries' is seven thousand five hundred rupees or less". Under section 10(6)(vii) of the Act, the remuneration due to any technician who was not a resident in any of the four financial years immediately preceding the financial year in which he arrived in India, chargeable under the head "Salaries", for services rendered as a technician, was exempt. In this case, the salary paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the total income, such exempted salary income should be treated as "nil" income for the purposes of section 40(c)(iii), opined the High Court. After hearing counsel for the parties, we are of the opinion that the view taken by the High Court is a reasonable one and does not call for any interference. The appeal, accordingly, fails and is dismissed. No costs. Appeal dismissed. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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