TMI Blog2014 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... side the scope of the powers of the Tribunal. Whatever may be the restriction placed upon the fora, which are conferred with restricted power of revision or the review, the jurisdiction and power of an appellate forum to arrive at the conclusions different from those arrived at by the primary authority on the same facts is, virtually unbridled - an appeal happens to be continuation of the original proceedings, unless the concerned statute restricts the powers of the appellate authority - The necessity to remand would arise, if only a new set of facts are pleaded, that too on the basis of additional material, which did not form part of the record of the original authority – thus, there was no error of law or jurisdiction on the part of the Tribunal – Decided against Revenue. - I.T.T.A. Nos. 72 of 2002, I.T.T.A.Nos.72 of 2002, 59, 209 & 290 of 2003 - - - Dated:- 6-8-2014 - L. Narasimha Reddy And Challa Kodanda Ram,JJ. For the Appellant : Sri J. V. Prasad For the Respondent : Sri Y. Ratnakar JUDGMENT (Per Honble Sri Justice L. Narasimha Reddy) The sole respondent is an assessee under the Income Tax Act, 1961 (for short the Act). As part of its activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income Tax . Learned counsel submits that in case the Tribunal felt that the claim made by the respondent fits into another head, albeit within the purview of Section 80-O of the Act, the matter ought to have been remanded. Sri Y.Ratnakar, learned counsel for the respondent, on the other hand, submits that Section 80-O of the Act, as it stood then, was wide enough to cover not only the professional or scientific services, but also the charges for exchange of information on ordinary, commercial and industrial activities. He submits that the Tribunal did not deviate from the record and, on appreciation of facts with reference to the same record, arrived at the conclusion that the claim made by the respondent can be treated as an activity of providing information concerning commercial, industrial and scientific knowledge and experience with a foreign company, duly referring to the relevant proceedings, and that no interference is warranted with the order of the Tribunal. Section 80-O of the Act, as it stood in the year 1991, reads as under: Whether the gross total income of an assessee, being an Indian company or a person (other than a company) who is resident in India, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their activities beyond the borders of the country on certain fields, and (2) to earn the foreign exchange. Accordingly, incentive in the form of deduction of income so earned to the extent of 50% was permitted. The relevant portion of the contract or arrangement entered into between the respondent, on the one hand, and foreign company CSPT, on the other hand, was extracted in the order of assessment itself. To be precise, the services to be rendered by the respondent to the foreign company were as under: a) To keep close and permanent contact with the Indian customers and authorities in order to immediately inform CSPT of any development which may contribute to increase the business or may in any way affect the interest of CSPT. b) Give to CSPT specific recommendations as to action by the assessee to negotiate and finalise prices, optional quantities and make necessary modifications. c) To render assistance to CSPT for the smooth and successful execution and administration of sales contracts with customers in India with reasonable efforts in causing and enabling such customers to fulfil their obligations in each sales contract including Government requirement and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee must undertake to qualify under Section 80-O of the Act, were summed up as under: a) Any patent sold; b) Any invention sold; c) Any model sold; d) Any design sold; e) Any secret formula sold; f) Any process sold; g) Any similar property right sold; h) Any information concerning commercial, industrial, scientific knowledge and experience sold to foreign Govt. or foreign enterprises; i) Any skill made available/to be provided/agreed to be made available; j) Any technical services rendered; k) Any professional services rendered; It appears that the respondent also treated the activity undertaken by it as professional service, occurring in clause (k). The Assessing Officer found that there is nothing professional in the service that was supposed to be rendered by the assessee and declined the deduction. The Commissioner (Appeals) concurred with him. The Tribunal, in a way, has agreed with the finding of the Assessing Officer that the services that were to be provided under the agreement by the respondent were not professional in nature. However, on the same set of facts and on the basis of the same record, a contention was advanced bef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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