1986 (2) TMI 79

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....oreign technician and under the terms of an agreement between the Indian company and his foreign employer the assessee was entitled to daily allowance of Rs. 310 during his stay in India which was from 24th Nov., 1978 to 31st March, 1979. The assessee received Rs. 39,680 as a total of this allowance. The assessee filed his return in the status of a resident but not ordinarily resident. He claimed ....

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....ration. Therefore on this point we hold that the AAC was right in entertaining the additional ground. 4. The next question is regarding the actual deduction which should have been allowed on merits. The ld. D.R. relied upon the Expln. to s. 9(1) (ii) which states as follows: Explanation: For the removal of doubts it is hereby declared that income of the nature referred to in this clause paya....

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....tate Act which was given retrospective effect from 1st July, 1963. The Court held that the Act was applicable and the tax could be levied on and from that date. 6. However it has been laid down in the case of Karimtharuvi Tea Estate Ltd. vs. State of Kerala (1960) 60 ITR 262 (SC) that the provisions of taxing statute would be applicable for the assessment year in question and since the assessme....

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.... the place where he ordinarily resides shall not be regarded, for the purposes of this clause as a special allowance granted to meet expenses wholly necessarily and exclusively incurred in the performance of such duties;)" 8. On behalf of the assessee it was argued that the Gujarat High Court decision in the case of CIT vs. S.G. Pgnatale (1980) 16 CTR (Guj) 337 : (1980) 124 ITR 319 (Guj) was ap....