Foreign technician daily allowance exemption under Income-tax law upheld on binding Supreme Court precedent.

Rupee-based daily allowance paid in India to a foreign technician was held exempt under section 10(14) of the Income-tax Act, 1961. The issue was treated as a pure question of law already covered by binding Supreme Court precedent, which recognised that such daily allowance falls within the exemption. Applying that authority, the reference was answered in the affirmative and the exemption was confirmed in favour of the assessee.

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Issues: Whether the living allowance paid to a foreign technician is exempt under section 10(14) of the Income-tax Act, 1961.

Analysis: The question stood covered by the authoritative decision of the Supreme Court holding that rupee payments received in India by way of daily allowance to a foreign technician are exempt under section 10(14). As the issue was purely legal and already concluded by binding precedent, the reference was answered accordingly.

Conclusion: The allowance is exempt under section 10(14) of the Income-tax Act, 1961, and the question was answered in the affirmative in favour of the assessee.

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