Deduction under Section 80RRA for remuneration abroad includes consultants and technicians, not limited to salary; appeal dismissed.

Interpretation of a tax deduction provision concerning remuneration paid abroad: the court construed 'remuneration' broadly and rejected limiting it to 'salary' paid to a traditional whole-time employee. The court held that the expressions 'employee' and 'employer' encompass consultants, technicians and part-time engagements because 'employ' denotes the use of services. Consequently, payments to such service providers qualify for the deduction; the appellate challenge to this interpretation was dismissed and the lower court's decision sustained.

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Issues: Whether the deduction under Section 80RRA of the Income-tax Act, 1961 applies to remuneration received in foreign currency by an Indian technician/consultant (i.e., fees paid to a consultant) from a foreign employer for services rendered outside India.

Analysis: The Court examined the language of Section 80RRA, noting that the section refers to "remuneration" received in foreign currency from "any employer" for services rendered outside India and prescribes conditions such as approval of terms by the Central Government and a 36-month limitation. The Court compared the terms used in Section 80RRA with related statutory language and the stated object of the provision in the Finance Bill, concluding that the statutory words were not limited to salaried employment. The Court considered established definitions and authorities on the meaning of "employer" and "employee", and held that the expressions are not technical and can encompass part-time engagement, consultants, or technicians whose services are utilised by a foreign enterprise. The Court rejected Revenue's submission that the section should be confined to salaried employees only, finding no textual or contextual basis for such a restriction.

Conclusion: The deduction under Section 80RRA applies to remuneration received by an Indian technician/consultant from a foreign employer for services rendered outside India; fees paid to a consultant in the circumstances fall within "remuneration" and the appeal by the Revenue is dismissed.

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