COMMISSIONER OF INCOME TAX Vs. SHIGERU BABA

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue is as to "whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the reimbursement of daily expenses and out of pocket expenses incurred by the foreign technician in India towards his stay in India is exempt under Section 10(14) of the Income-tax Act, 1961 ?" THE year of assessment is 1981-82.

(2.) THE assessee is a citizen of Japan who had stayed in India in connection with the supply of capital goods and erection of machinery for an Indian company, Tuticorin Alkali Chemicals and Fertilisers Ltd., Madras. He received from the Indian company during his stay in India reimbursement of the lodging, boarding and entertainment expenses. THE Income-tax Officer has treated the amount of Rs. 71,811 as income from other sources and levied tax thereon.