COMMISSONER OF INCOME TAX BOMBAY Vs. KUIPERS TIESTO

JUDGEMENT

(1.) BY this reference at the instance of the Revenue, made under section 256 (1) of the Income Tax Act, 1961 (for short "the Act"), the Income-tax Appellate Tribunal, Bombay Bench E, Bombay has referred the following question of law to this Court for opinion : "whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has rightly held that the assessee entitled to the separate exemption in respect of passage money under section 10 (6) (i) (a), and the same was not subject to the ceiling fixed by section 10 (6) (viia) (A) of the Income-tax Act, 1961?"

(2.) IN the assessment year 1973-74, the assessee Mr. Kuipers Tiesto, a foreign technician was in theenrployment of M/s. Century Enka Ltd. , Bombay. He filed return of his income at Rs. 1,26,310/ -. He revised his return and declared his total income as Rs. 84. 720a. The assessee has claimed exemption of Rs. 28,030/- under section 10 (6) (i) (a) of the Act on account of passage money paid to him by his employer for proceeding on home leave out of India along with his wife and children. The asessee has also claimed exemption of his salary of Rs. 48,000/- under section 10 (6) (viia) (A) of the Act. The Income-tax Officer granted exemptions under both the heads by treating them as separate exemptions available to the assessee. The Commissioner of Income-tax, Bombs City XI, Bombay issued notice to the assessee for reopening the assessment under section 263 (1) of the Act. As per the Commissioner, the assessee was not entitled for exemption of passage money under section 10 (6) (i) (a) in addition to the exemption under section 10 (6) (viia) (A) of the Act. After hearing the assessee the Commissioner negatived the assessees claim that provisions of section 10 (6) (i) (a) and section 10 (6) (viia) (A) were distinct, unconnected and mutually exclusive. In second appeal, the Income-tax Appellate Tribunal, Bombay Bench E, held that the assessee was entitled to a separate exemption in respect of passage money under section 10 (6) (i) (a) of the Act Accordingly, the income-tax Appellate Tribunal set aside the order of the Commissioner and restored the order of the Income-tax Officer.

(3.) THE Revenue applied for reference under section 256 (1) of the Act. By order dated 25-4-1980, Income Tax Appellate Tribunal, Bombay Bench E has referred the aforesaid question for opinion of this Court.