2002 (5) TMI 33

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...., with effect from April 1, 1978. His representation was rejected for the reason that the petitioner was "working as an independent contractor acting as consultant, rather than an employee, as envisaged in section 80RRA of the Act." This was the stand of the respondents in their letter dated March 27, 1976, and it was reiterated in the impugned order dated January 28, 1978. The relevant portion of the said section reads as follows: the underlining has been added for emphasis: "80RRA. Deduction in respect of remuneration received for services rendered outside India.-(1) Where the gross total income of an individual who is a citizen of India includes any remuneration received by him in foreign currency from any employer (being a foreign....

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.... by Indian citizens abroad and thereby augmenting our foreign currency holding, make it abundantly clear that the incentive is neither restricted to the remittance of salaries alone, nor to the cases of employees only. Had this been the intendment, these words could have been used by the Act. This section also provides relief to an Indian citizen against double taxation. The matter is no longer res integra because of the pronouncement of the Supreme Court in CBDT v. Aditya V. Birla [1988] 170 ITR 137, which reads as follows: "In Chintaman Rao v. State of Madhya Pradesh [1958] SCR 1340, at page 1346 of the report (AIR 1958 SC 388), it was observed that the concept of employment involved three ingredients: (1) employer, (2) employee, an....

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....ngineer appointed by a local authority to supervise the execution of works, but not subject to the local authority's supervision, is nevertheless an 'employee' within the meaning of section 40(1) of the Local Government Superannuation Act, 1937, in Morren v. Swinton and Pendlebury Borough Council [1965] 1 WLR 576 (QB). In Chambers' 20th Century Dictionary, 'employ' has been indicated to mean to occupy the time or attention of. 'Employment' means an act of employing. In the Concise Oxford Dictionary, 'employee' means a person employed for wages. 'Employ' means use of services of persons. It follows, therefore, that it comprehends a whole-time servant or a part-time engagee. It is significant that section 80RRA of the Act uses the expression ....