TMI Blog2008 (8) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... f a chartered accountant to M/s. Toepfer International Asia Pte. Ltd., Singapore and M/s. Mahindra Ashar, Dubai amounting to Rs. 4,53,329. The assessee claimed that as he was an author, professional fees received by him in foreign exchange is entitled to deduction under section 80RR. The assessee submitted that from a review of section 80RR, it is clear that, to qualify for the benefit of this section, the assessee must fulfil the following five conditions : 1. He is an individual resident in India. 2. He is an author, playwright, artist, musician, actor or sportsman. 3. His gross total income includes any income derived by him in the exercise of his profession. 4. Such income is received from the Government of a foreign State or any person not resident in India. 5. Such income is received in or brought into India, in accordance with FERA and any rules made thereunder within a period of six months from the end of the previous year. It is, thus, clear that once each of the abovementioned five conditions is fulfilled, the assessee would be entitled to the deduction under section 80RR. The Assessing Officer rejected the claim on the ground that the plain reading of the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crux of the issue is the phrase-"any income derived by him in exercise of his profession" occurring in section 80RR. The issue for consideration is whether in the case of author, the income derived by him in foreign exchange for exercising any type of profession other than those mentioned under section 80RR would have to be considered for relief under that section or whether the income derived only from the exercise of the profession referred to in that section should be considered. It is not in dispute that the income derived by the assessee has been from the exercise of the profession as a chartered accountant and not from the exercise of the profession as an author, playwright, etc. It is the contention of the assessee that the section merely prescribes the income earned from exercise of his profession and does not refer to the profession mentioned in the earlier limb of the section. Learned counsel for the assessee also argued that once the wording of the section is clear, no other external tool of the interpretation of the section is necessary. The assessee relied on the cases where these aspects have been examined by the court in the context of similar provision in section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All) wherein it has been held that (headnote) "while interpreting a provision in a statute one should look squarely at the words in the light of what is expressly stated. Nothing can be implied so as to supply any assumed deficiency". According to the assessee, as long as he is an author, playwright, etc., his entire professional income received from abroad is entitled to exemption under section 80RR whether or not such income is connected with the profession of authorship, sports, acting, etc. The learned Departmental representative submitted that the words used are "his profession" and not "a profession" or "any profession". Further he also submitted that the deduction under the section will be available only to a full-time author, playwright, sportsman, etc. Hence the term "his profession" will mean only the profession of the persons referred to in the section, viz., profession of authorship, playwright, sportsman, etc. We heard both the sides. As regards the decision in the case of Smt. Taru Jethmal Lalvani v. Secretary, Ministry of Finance, Department of Revenue [1990] 185 ITR 418 (Bom), the Commissioner of Income-tax (Appeals) has held as follows : "The issue before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e scope of this section are publication outside India of a book produced by the author, contribution of articles to foreign journals and magazines, exhibition of paintings, sculptures and other works. It is therefore clear that the purpose of introducing section 80RR is in respect of income derived from exercise of the profession to which the section applies, viz., author, playwrights, artists, etc. The section cannot be interpreted to mean that in respect of an author who has derived income by exercising profession which has no connection whatsoever with his authorship would be entitled to deduction under section 80RR. The section has been introduced to showcase the successful professionals in the listed fields. The income of the authors from abroad from exercise of his profession of authorship will be entitled to exemption. We find that if this interpretation is to be accepted, then it may lead to unintended results. Merely because a person can sing or play games, and therefore be called a musician or a sportsman, all his professional income from abroad will be entitled to exemption under section 80RR. This does not appear to be the legislative intent. The purpose is to boost t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income-tax (Appeals) rejecting the claim of deduction under section 80RR in respect of income derived by the assessee from exercising the profession of chartered accountant. The appeal by the assessee on this issue is dismissed. The second issue for the assessment year 2000-01, is regarding disallowance of Rs. 13,772 out of telephone expenses. The Assessing Officer has disallowed a sum of Rs. 13,772 out of telephone expenses in the year of assessment. We find that the Assessing Officer has subsequently rectified his order vide his order dated April 10, 2003 deleting the disallowance of Rs. 13,772. The assessee had filed a petition before the Commissioner of Income-tax (Appeals) withdrawing the grounds filed before the Commissioner of Income-tax (Appeals) regarding the disallowance of telephone expenses in view of the order of rectification by the Assessing Officer. The Commissioner of Income-tax (Appeals) does not appear to have rectified his order in respect of this issue. Heard both the sides. From the perusal of the record, it is submitted that the Assessing Officer has rectified the order of assessment and deleted the disallowance of Rs. 13,772 in respect of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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