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2011 (12) TMI 40 - HC - Income TaxDeduction u/s 80-O - whether contractor of sub-contractor eligible for deduction u/s 80-O - rendering of service outside India - it was contended that the assessee was not entitled for deduction under Section 80-O of the Act, it being a mere contractor and the deduction under the said provision is available only with gross total income of an assessee being an Indian company which includes any income by way of royalty fees or commission, similar payments received by the assessee from the company of the foreign state or a foreign enterprise in consideration for the use outside India of any patent, innovation, model, design etc. - Held that:- under the contracts in question, the assessee had made available technical information to the foreign Government for use outside India and had also rendered technical services to the foreign Government outside India. - Even, theoretically the sub-contractor is entitled for the benefit under Section 80-O of the Act and to that extent the impugned order of the Tribunal in denying such right of the assessee, is stand set aside. - Decided in favor of assessee. Absence of positive income - Held that:- In view of the principles enunciated in the above cited decisions of the Apex Court in the case of COMMISSIOENR OF INCOME TAX V/ SHIRKE CONSTRUCTION EQUIPMENT LTD., [2007 -TMI - 6560 - SUPREME Court], we are of the view that the computation of income has to be made in accordance with the provisions of the Income Tax Act and the income includes not only the "profits", but also the "losses" and therefore, we direct the assessing officer to compute the income in accordance with the provisions of the Income Tax Act. - Decided in favor of assessee by way of remand.
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