TMI Blog2001 (3) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... by OMIC International. The job of the assessee was to make inspection and survey of cargo either exported from India or imported to India. According to the contract the assessee had to inspect the cargo exported from India to Kenya, Benin and Peru. The assessee had to inspect and certify in relation to quality, quantity and price of the exported item. Further, the relevant tariff code of the commodity was to be certified for the purpose of ascertaining the correct import duty by the concerned authority of the importing countries. According to the assessee the price verification was required by the Banks of importing countries to ensure that there was no excess Foreign Exchange payments being made at the time of import. The assessee was doing the job on behalf of OMIC International, Tokyo and has been receiving payment in converting the Foreign Exchange. This fact was brought to the notice of the Assessing Officer (in short, AO) by the assessee for the purpose of claiming deduction under section 80-O of the Act. However, the Assessing Officer was of the view that according to the Explanation III appended to section 80-O of the Act, the assessee was inspecting and was issuing certif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce and skill. According to the assessee the certificates issued by the assessee in respect of the exported goods were being used by the importing countries to ensure the correct' price, quality and Customs Duty to be paid by the countries. The details of statement of income received by the assessee from certification job has been filed at page s 4 to 6 of the paper book. The computation of deduction is available at pages 7 and 8 of the paper book. The assessee has also brought on record copy of the Board's circular No. 700 dated 23-3-1995 and the copy of the written submission filed before the CIT(A). Apart from that, the assessee has brought on record the copies of the following documents : (1) Circular letter No. NA-07/510 dated 1-2-i991 from OMIC International Ltd., Tokyo, advising appointment for CISS Kenya. (2) FAX dated 1-2-1991 from Cotecna Inspection S.A. Geneva to OMIC International Ltd., Tokyo. (3) Circular fax dated 1-2-1991 from Cotecna Inspection on CISS Kenya about enlarged CISS contract. (4) Letter NA-08/097 dated 12-4-1991 from OMIC International Ltd., Tokyo to OMIC (India) Pvt. Ltd. advising fee schedule for Kenya and Benin. (5) Letter dated 10-.2-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n OMIC International Ltd. for Yen 750000 per quarter for the period January to March, 1992 equivalent to US $ 5474.45 equivalent to Rs. 104780.97 being fees for Iron Ore Information Services for Japan. (19) Debit Note No. 15/42 (ORE-K) dated 30-3-1992 on OMIC International Ltd. for Yen 250000 per quarter for the quarter ended January to March, 1992 equivalent to US $ 1824.82 equiva lent to Rs. 34927.05 being fees for Iron Ore Informational Service for South Korea. The learned counsel has brought our attention to the letter dated 1-2-1991 issued by OMIC International, Tokyo to different places of the world including the assessee wherein it has been mentioned inter alia that the Kenyan Government appointed cotecn a inspection as per Telex message for other Asian countries for CISS operation excluding Japan, Taiwan and Singapore. The Fax message issued by cotecna Inspection, Geneva is at page 14 of the paper book by which cotecna inspection has awarded different territories of Asian Zone to OMIC International Ltd. for the purpose of inspection and certification. At pages 16 and 17 of the paper book letters issued by OMIC International Ltd. as prescribed fees for the job to be rende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel has placed reliance on the following decisions (1) EP. W. DaCosta v. Union of India [1980] 121 ITR 751 (Delhi). (services rendered from India) (2) JB. Boda Co. (P.) Ltd v. CBDT [1997] 223 ITR 271 (SC) at 281 (services rendered from India) (3) A. S. Mani v. CIT[ 1 997] 227 ITR 380 (AAR) at 387. (services rendered from India) (4) Blue Dart Express Ltd's case. (services rendered from India) (5) CBDT v. Oberoi Hotels (India) (P.) Ltd. [1998] 231 ITR 148 (SC). (6) Continental Construction Ltd. v. CIT [1992] 195 ITR 81 (SC) at 116 and 117. (7) Gannon Dunkerley, Co. Ltd. v. CBDT [1986] 159 ITR 162 (Bom.) at 165 and 166. (8) Simon Carves India Ltd. v. ITO [1986] 159 ITR 167 (Cal.) at 174. 4. On the other hand, Sri D.K. Ghosh, the learned departmental representative, supported the orders passed by the authorities below and further submitted that in the present case the assessee has rendered its services in India hence, deduction under section 80-0 of the Act cannot be allowed to it. 5. We have beard both the sides and have perused the material on record. For the purpose of allowing deduction under section 80-0 of the Act the conditions are t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature of service which was being rendered by the assessee regarding inspection of cargo in relation to quality and price of the goods. After inspection the assessee issues certificate of inspection which is called report of findings. Some of the sample copies of the report was placed on record which goes to show that the report was issued according to the Import Regulation of the Republic of Kenya. From the aforesaid facts it is clear that the Government clients of different countries required the aforesaid reports pursuant to the inspections made by the assessee on behalf of OMIC International Ltd. The contract work was obtained by OMIC International Ltd. and the inspection was being made in India by the assessee in relation to the export goods sent to the destinations like Kenya, Benin and Peru. The assessee has brought on record the details of the certification job done by it for the purposes of deduction under section 80-0 of the Act which is placed at page 4 of the paper book. From the said details we find that the assessee had rendered its specialised job for the destination countries like Kenya, Benin, Nigeria and Pakistan. We have already noticed that the service was render ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
