Law:

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Section 10(6) of the Income-tax Act, 1961 - Exemptions - Salaries received by foreign technician - Whether in order to be eligible for exemption under section 10(6)(vii)(a)(ii) assessee's service should be continuously under one employer only during period of 36 months - Held, no - Whether assessee would be eligible for said exemption even where he has been employed by more than one employer during relevant period provided all such contracts of employment have been approved by Government - Held, yes Facts The assessee, a foreign technician, worked with a public sector company in India from December 1966 to January 1968. He left India in January 1968 and came back and worked with another Indian company from 23-9-1968 to 30-10-1969 and from 15-1-1970 to 15-3-1970. Both the employments were approved by the Government. For assessment years 1969-70 and 1970-71 the ITO rejected the assessee's claim for exemption under section 10(6)(vii)( a)(ii) on the ground that the assessee had not been continuously employed with the same employer. The assessee's appeal was allowed by the AAC and the AAC's order was upheld by the Tribunal. On reference : Held On a reading of section 10 it appears that the relevant parts of the said section, as appearing in clause (6)(vii )(a)(ii ) thereof refers to employment generally and nowhere it has been laid down that an employment within the meaning of the said section would be confined to only one employment under one employer. There was no reason why exemption should not be granted to the assessee where his services with both the employers during the period of exemption was approved by the Government. Therefore, the Tribunal was justified in its view. Cases referred to CIT v. L.H. Hall [1980] 123 ITR 738 (Cal.) and CIT v. E. Miller [1977] 108 ITR 493 (Bom.). Sunil Mukherji for the Applicant. Dr. Pal and R.N. Dutt for the Respondent. JUDGMENT Sen, J. - In this reference under section 256(1) of the Income-tax Act, 1961 ('the Act'), the question of law referred by the Tribunal as arising out of its order for the opinion of this Court is as follows : "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding…

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