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TMI Blog1986 (2) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... employer the assessee was entitled to daily allowance of Rs. 310 during his stay in India which was from 24th Nov., 1978 to 31st March, 1979. The assessee received Rs. 39,680 as a total of this allowance. The assessee filed his return in the status of a resident but not ordinarily resident. He claimed the deduction in respect of half of this sum under s. 10(14) of the Act which the ITO rejected. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 4. The next question is regarding the actual deduction which should have been allowed on merits. The ld. D.R. relied upon the Expln. to s. 9(1) (ii) which states as follows: Explanation: For the removal of doubts it is hereby declared that income of the nature referred to in this clause payable for service rendered in India shall be regarded as income earned in India. This Explanation has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable and the tax could be levied on and from that date. 6. However it has been laid down in the case of Karimtharuvi Tea Estate Ltd. vs. State of Kerala (1960) 60 ITR 262 (SC) that the provisions of taxing statute would be applicable for the assessment year in question and since the assessment year in this case started from 1st April, 1979 Explanation would be applicable. 7. The next questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance granted to meet expenses wholly necessarily and exclusively incurred in the performance of such duties;)" 8. On behalf of the assessee it was argued that the Gujarat High Court decision in the case of CIT vs. S.G. Pgnatale (1980) 16 CTR (Guj) 337 : (1980) 124 ITR 319 (Guj) was applicable in so far as it laid down that the living allowance is not a perquisite and therefore it was not sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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