Syed Shah Mohammed Quadri:— This is an application under section 245Q(1) of the Income-tax Act, 1961 (for short “the Act”). The applicant, Mr. D.W Chang, a Korean nationall, is an employee of International Metro Civil Contractors, (IMCC) which is having its office at Mumbai. The IMCC is a joint Venture of Dkyckerhoff & Widmann AG of Germany, two Indian Companies - Larsen & Toubro Limited and IRCON International - Samsung Corporation of South Korea and Shimizu Corporation of Japan. The joint venture has been established to execute a contract for the design and construction of Metro Corridor for Delhi Metro Rail Corporation Limited.
2. The applicant seeks advance ruling on the following question:
“Whether the applicant who has been seconded to work in India qualifies for exemption under section 10(5B) of the Income-tax Act, 1961.”
3. The applicant says that he is a Mechanical Engineer and a Member of Institute of Civil Engineers, Korea having 25 years experience of working in the field in various countries. He further states that he is engaged for the design and construction of Metro Corridor wherein his specialized knowledge and technical expertise which is locally not available in India, is being actually used. He claims that he fulfills the requirements of section 10(5B) of the Act, therefore, he is entitled to exemption thereunder.
4. In his comments to this application, the Director of Income-tax (International Taxation) Mumbai, the jurisdictional Commissioner, has conceded that having regard to the bio-data of the applicant and offer of his appointment, he is eligible for the exemption under the said provision.
5. In view of the above position, we rule on the above question in favour of the applicant that he qualifies for the exemption under section 10(5B) of the Act.
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