ADITYA Vs. CENTRAL BOARD OF DIRECT TAXES

JUDGEMENT

(1.) THE petition involves the interpretation of S. 80RRA of the IT Act, 1961. It reads thus: "80RRA. (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 employer or an Indian concern) for any service rendered by him outside India, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the individual, a deduction from such remuneration of an amount equal to fifty per cent thereof : Provided that where the individual renders continuous service outside India under or for such employer for a period exceeding thirty six months, no deduction under this section shall be allowed in respect of the remuneration for such service relating to any period after the expiry of the thirty six months aforesaid.

(2.) THE petitioner entered into an agreement on May 5, 1978, with the Thai Rayon Corporation Ltd., Thailand. It was engaged in the business of manufacturing and selling staple fibre at Bangkok in Thailand. The agreement recited that the petitioner, referred to as the technician in the agreement, had several years' experience in the business of manufacturing and selling staple fibre, that the Thai company, referred to in the agreement as the employer, had approached him to make available to it his services on terms and conditions which the greement recorded. The terms and conditions, inter alia, were that the Thai company would pay to the petitioner a remuneration of U.S. dollars 12,000 per annum in quarterly instalments and it would be eceivable in Bangkok. The agreement was for a period of three years with liberty to either party to terminate it after six months' notice. It was subject to the approval of the Governments of Thailand and ndia and other authorities, if necessary.

(3.) MR . S. P. Mehta, learned counsel for the petitioner, submitted that the IT Act used the phrases