https://www.taxtmi.com/caselaws?id=22106 For AYs prior to 1 April 1979, the Explanation to s 9(1)(ii) (effective from 1 April 1979) could not be applied retrospectively, since the Legislature confined its operation to a specified effective date; consequently, salary could not be brought to tax on the "service rendered in India" basis for the earlier period. For the pre-Explanation regime, "earned in India" in s 9(1)(ii) was construed as "accruing/arising in India", turning on where the liability to pay and payability arose, not merely the situs of services; accordingly, the salary was held not taxable. Living allowance was treated as reimbursement of necessary stay expenses, not a perquisite/salary; it was held non-taxable. The salary-payer finding was held factual, raising no question of law. en-us Fri, 15 Dec 1989 00:00:00 +0530 Mon, 22 Dec 2025 17:13:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22106 For AYs prior to 1 April 1979, the Explanation to s 9(1)(ii) (effective from 1 April 1979) could not be applied retrospectively, since the Legislature confined its operation to a specified effective date; consequently, salary could not be brought to tax on the "service rendered in India" basis for the earlier period. For the pre-Explanation regime, "earned in India" in s 9(1)(ii) was construed as "accruing/arising in India", turning on where the liability to pay and payability arose, not merely the situs of services; accordingly, the salary was held not taxable. Living allowance was treated as reimbursement of necessary stay expenses, not a perquisite/salary; it was held non-taxable. The salary-payer finding was held factual, raising no question of law. Case-Laws Income Tax Fri, 15 Dec 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22106