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TMI Blog2014 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... by it in the return submitted by it for the assessment years 1991-92 to 1994-95 was referable to Section 80-O of the Act, as it stood then. The plea of the respondent was that it has entered into an agreement with certain foreign companies for providing guidance and supply of information about the activities in India, of the foreign company, by name CSTP of French origin. For the assessment year 1992-93, the benefit claimed was 50% of the commission received by it amounting to Rs. 23,24,586/-. For the assessment year 1991-92, though claim was paid, it was not pressed and, for the assessment years 1993-94 and 1994-95, the benefit was claimed as regards different amounts. The Assessing Officer took the view that the claim made by the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. Commissioner 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 treat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign exchange, there shall be allowed, in accordance with and subject to the provisions of this section, a deduction of an amount equal to fifty percent of the income so received in, or brought into, India, in computing the total income of the assessee]: Provided that such income is received in India within a period of six months from the end of the previous year, or where the Chief Commissioner or Commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control, unable to do so within the said period of six months, within such further period as the Chief Commissioner or Commissioner may allow in this behalf. Explanation For the purpose of this section, - (i) convertible foreign ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 all legal, financial and commercial aspects. Such assistance will include but shall not be limited to:- Following and obtaining mutually acceptable schedules of shipments. Following nominations of vessels in accordance with the schedule of shipments. Following matters related to changes, substitutions of vessels, and estimated times of arrivals. Following the timely establishment and communication of Letters of Credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received and the nature of services that are to be rendered towards consideration under the contract or arrangement. On the 1st aspect, he took note of the fact that the receipts can be in the form of commission, royalty or fee or any other payment. There was no quarrel as regards the nature of the receipt by the respondent. Regarding source also, there was no difficulty, since the company with which the respondent had arrangement was a French origin. The activities, which an assessee 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 sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal ought to have remanded the matter, could certainly have been accepted, if only the Tribunal recorded any finding on the basis of the material, which did not form part of the record before the Assessing Officer. Not a paper or a word was added to the record over and above what was there before the Assessing Officer. It is an appreciation of same set of facts and record, that the Tribunal arrived at the conclusion that the claim of the respondent fits into one of the categories provided for under Section 80-O of the Act. The mere fact that the same set of facts are treated as constituting the basis for a category, other than the one that was pleaded before the Assessing Officer, does not bring about a situation, warranting remand; nor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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