Exemption for foreign technician reimbursements upheld where stay-related expenses were wholly and exclusively incurred for duties in India

Reimbursement of lodging, boarding and entertainment expenses paid to a foreign technician for stay in India was treated as exempt under section 10(14) because the Tribunal found the expenditure was wholly, necessarily and exclusively incurred for performance of duties in India. That finding was treated as one of fact, and no material was produced to dislodge it. The reimbursement therefore fell within the exempt category and was held not taxable.

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Issues: Whether reimbursement of daily expenses and out-of-pocket expenses incurred by a foreign technician in India towards stay in India was exempt under section 10(14) of the Income-tax Act, 1961.

Analysis: The amounts reimbursed for lodging, boarding and entertainment were held to relate to expenses wholly, necessarily and exclusively incurred for the performance of duties in India. The Tribunal's finding that the expenditure fell within the exempt category was treated as a finding of fact, and no material was shown to dislodge it.

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

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