TaxTMI 
TaxTMI 
TaxTMI 
1972 (12) TMI 21
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....Sri. Mosanobu Nakai, the skipper of a fishing trawler, a specialist in the field of fishing by using deep-sea going trawlers, a Japanese, whose services have been obtained by the Blue Bay Fisheries who have been assessed for and on behalf of the said Nakai for the year 1966-67. Nakai was being paid reasonably high salary, Rs. 3,000 per month, with other facilities as well and it has been assumed in the proceedings before the income-tax authorities that the remuneration that he received during the entire accounting period relating to the assessment year fell for consideration of the question of the applicability of the Explanation to section 10(6)(vii) of the Income-tax Act, 1961, for short, " the Act ". We say so because the period relating....
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....on of the words following technician who has " special knowledge and experience in industrial or business management techniques ", it is clear that it is only the second limb of the Explanation that we have read that falls for consideration in this case and not the first. This is admitted before us. The whole case, therefore, turned on the interpretation to be placed on the words " industrial or business management techniques " occurring in clause (ii) in the Explanation. On behalf of the assessee, it was contended by counsel that any person who has specialised knowledge and experience which is necessary for the proper working of an industry would fall within the words in the Explanation. According to his submission a specialist who is abl....
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....xperience. It is only technicians having knowledge and experience in " constructional or manufacturing operations, or in mining or in the generation or distribution of electricity or any other form of power " that are included in the first limb of the Explanation. It is easy to conceive of so many other technicians who are as highly skilled and as highly experienced in other branches than constructional or manufacturing and distribution of power who are excluded, from the first limb. This clearly shows that the definition is intended only to take in some of the various technicians that may be employed in an industry or business. We must also bear in mind that the second limb is an addition that has been made to the definition that was obtai....
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.... to the Appellate Assistant Commissioner and contended that the Explanation to section 10(6)(vii) applied to the appointment in question and the salary paid to the skipper had to be excluded in computing the total income. The Appellate Assistant Commissioner held that the word ' technician ' was wide enough to include a skipper performing specialised duties relating to fishing industry. He accordingly allowed the appeal and held that the salary earned by the skipper was exempt from tax. 3. The authorised representative for the department urged before us that the skipper was not a technician within the meaning of section 10(6)(vii), that the Explanation to that section has defined a technician as a person having specialised knowledge and ex....
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....g an Indian to qualify himself to be a competent skipper during the period of his service. He argued that in the background of these facts, the foreign skipper was really a technician having specialised knowledge and experience in industrial management techniques. 4. After having heard both sides, we feel that the decision of the Appellate Assistant Commissioner in this case is correct. It will be recognised on all hands that mechanised deep sea fishing employing the latest methods is an industry capable of vast potentialities. The skipper of a trawler engaged in fishing operations has to be necessarily taken as a technician having specialised knowledge in industrial or business management techniques. The expert knowledge of the skipper wa....