N SCIANDRA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The facts found and/or admitted in these proceedings are shortly as follows : The Fertilizer Corporation of India, a Government of India undertaking incorporated under the Companies Act, 1956 (hereinafter referred to as "the Corporation"), embarked on a project designated Durgapur Fertilizer Project, where it was decided to erect an ammonia plant in Durgapur, West Bengal. With that object the Corporation entered into agreements in writing with two Italian technical concerns, namely, Montecatini Edition S.P.A., Milano (Italy) and Ansaldo S.P.A., Genova (Italy) (hereinafter referred to as "Ansaldo"), inter alia, for obtaining technical know-how and guidance and for supply of various technical equipments, machinery and instruments as also services of technical personnel. In the agreement by and between the Corporation and Ansaldo dated the 31st August, 1966, it was, inter alia, stipulated as follows :

(2.) Pursuant to the aforesaid, Ansaldo deputed N. Sciandra, the assessee, an Italian technician, to work on the said project. The assessee reached India for the assignment on the 4th March, 1969. His engagement was approved by the Government of India under Section 10(6)(vii) of the I.T. Act, 1961, initially for a period of 15 months. Such approval was later extended by another 10 months.

(3.) In the assessment year 1971-72, the relevant previous year ending on 31st March, 1971, the assessee was assessed to income-tax. Two certificates, respectively, dated the 25th September and the 14th November, 1970, issued by the Corporation certifying that the assessee had been engaged by the Corporation in connection with the Durgapur Fertilizer Project and also certifying his remuneration were filed in the assessment proceedings. The certificate dated the 14th November, 1970, was, inter alia, as follows :