9911796707
TMI Blog1988 (2) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... his income earned outside India. 2. From the facts available before us, it would appear that the assessee entered into a contract of service with M/s. Iraqi State Enterprises for Maritime Transport on 30th July, 1979. The period of contract was not to exceed one year unless extended for the completion of the ship's voyage to Iraq. The contract was to commence from 3rd Sept., 1979 and was to expire on the date the employee signed off. The employee's monthly salary was fixed at 1300 US $ and this included overtime, extra work, dangerous cargo, allowances, etc. The employer was to retain 50 per cent of one month's salary of the employee as a deposit which was to be refunded to the employee when the final settlement was made at the end of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the meaning of Expln. to s. 6(1) of the IT Act. In this view of the matter, the CIT(A) confirmed the order of the ITO and hence this appeal. 3. Shri V.B. Patwardhan, Advocate, who appeared for the assessee, argued that Expln. to s. 6(1) only says that the assessee should be rendering services outside India. It does not say that the person must be employed outside India at the time of employment of his leave of vacation in India. The assessee came to India on 8th Jan., 1980 and returned to the employment outside India on 16th April, 1980. The conditions laid down in s. 6(1) and the Explanation thereto are satisfied if a person takes up employment outside India after enjoying his leave or vacation in India. The section does not require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dship and discourages such persons from spending even a reasonable period on vacation in their home country, I propose to provide that Indian citizens employed outside India may stay on vacation in the country for 89 days in a year without attracting such tax liability". He interpreted these observations to mean that the relief contemplated in the Minister's speech would be available to the Indian citizens outside India only if they were on vacation and vacation could only be granted if they were in employment. Since in the present case the assessee had changed employment and had joined a new company on termination of his stay in India, such stay could not be treated as leave or vacation. 5. We have carefully considered the arguments on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leave. Secondly, the words "leave" and "vacation" have distinct connotations, whereas "leave" involves taking permission of a superior authority before remaining absent from duty, "vacation" would indicate that no such permission is required to be taken. It would thus mean cessation of work for the purpose of relaxation. Chambers' Twentieth Century Dictionary describes "leave", inter alia, to mean "permitted absence from duty: time of this, holidays". It describes "vacation" inter alia, as "holidays, especially of schools. Colleges, law Courts; leisure; intermission". Thus, whereas for leave certain degree of prior consent from the employer is implied, "vacation" can mean voluntary cessation of work or period taken off from work for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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