Section 80RRA approval must be decided on the statutory criteria, not on an employer-employee relationship, and by a speaking order.

Section 80RRA approval cannot be denied on the basis that the applicant lacks an employer-employee relationship, because the provision focuses on services rendered outside India by a person who answers the description of a technician. The impugned communication was found to rest on an incorrect view of the statutory requirements and failed to disclose proper consideration of the application. It was also not a speaking order. The rejection was therefore unsustainable, the letter was set aside, and the matter was directed to be reconsidered afresh by a speaking order in accordance with law.

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Issues: Whether the rejection of the petitioner's application for approval of the agreements under section 80RRA of the Income-tax Act, 1961, was valid and whether the matter required reconsideration by a speaking order.

Analysis: Section 80RRA requires that services be rendered outside India by a person answering the description of a technician within the meaning of the provision, and does not make approval dependent on an employer-employee relationship. The impugned communication proceeded on an incorrect understanding of the statutory requirements and did not disclose proper consideration of the application. It was also not a speaking order, and the earlier rejection had not been duly addressed.

Conclusion: The rejection was unsustainable. The impugned letter was set aside and the matter was directed to be reconsidered afresh in accordance with law by a speaking order.

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