Law:

Section:

Section 15 of the Income-tax Act, 1961 - Salaries - Chargeable as - Assessee, who was an employee of a Japanese company, came to India to supervise an electricity project set up by State Electricity Board - During project, assessee remained employee of Japanese company - Under agreement between Board and Japanese company, assessee was to be paid supervision charges by Board - Board had granted a certificate to assessee in respect of amount paid to him - Whether assessee was an employee of Board and amount received by him from Board could be assessed as salary - Held, no Facts The assessee, a Japanese national, who was an engineer in the employment of a Japanese company came to India to supervise an electricity project set up by the Board. The agreement between the Board and the Japanese company as recorded in the letter of confirmation stated that the technicians who were deputed by the Japanese company were to be paid supervision charges by the Board at specific rates. Further, the Japanese company would submit their bills monthly to the Board which would pay to the Japanese company after two weeks of the receipt of the bills the amount charged, partly in dollars to the Japanese company and partly in rupees in the bank account of the engineers concerned. The ITO held that the assessee having been a resident in India in one of the four financial years immediately preceding the financial year involved, his salary was assessable to income-tax. On appeal, on the basis of the agreement between the Japanese company and the Board, the assessee contended that he, was in fact an employee of the Japanese company and had been deputed by it to work as a technician with the Board and there was no contract of employment between him and the Board. The AAO noted that the Board had granted a certificate to the assessee in respect of remuneration paid to him and, therefore, confirmed the assessment. On second appeal, the Tribunal found that there was no agreement directly or indirectly between the Board and the assessee. It held that the assessee remained an employee of the Japanese company and the payment of only a part of the charges in rupees to the assessee by the Board…

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