CENTRAL BOARD OF DIRECT TAXES AND OTHERS A vs ADITYA V. BIRLA

The Supreme Court upheld the High Court's decision regarding the interpretation of Section 80 RRA of the Income Tax Act, 1961, clarifying that the term 'employee' includes consultants and technicians employed by foreign companies. The Court found that the respondent's remuneration met the criteria for deductions under Section 80 RRA, as it was received in foreign currency for services rendered outside India. The Court dismissed the appeal, affirming that the Government's refusal of approval was incorrect, as the respondent's status qualified him for the benefits of the section.