TMI Blog2004 (7) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... d of instrumentation for X-ray Crystallography. While attending a seminar he came into contact with the director of M/s. X-ray Research GmbH, Hamburg, Germany and claimed to have entered into an oral agreement with it as the company was desirous of entering the Indian market. In order to establish their presence by supplying scientific, industrial and commercial information regarding sales potentiality of the Indian market. With the help of the assessee, the business of the German company was established in India. The assessee claimed deduction under section 80-O at 50 per cent from his net income from retainer fee and consultancy charges. Relying upon Explanation (iii) to section 80-O, the Assessing Officer denied the claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee in that case was not in consideration for the use outside India of any patent, invention, model, design or registered trademark. The assessee has only rendered service by providing commercial information regarding sales potentiality in Indian market. The learned DR disputed the claims of the assessee. 4. The learned counsel, on the other hand, strongly relied upon the discussions made in the impugned order. 5. I have carefully gone through the records and considered the rival submissions. Section 80-O of the Income-tax Act, 1961, reads as under: "Section 80-O - Whether the gross total income of an assessee, being an Indian company or a person (other than a company) who is resident in India, includes any income receive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at M/s. X-ray Research GmbH, is a company which was engaged in the manufacture of X-ray instruments. The assessee is a qualified technician and had several years of experience by working for several companies in similar fields. In other words, the assessee has helped the overseas manufacturer to find its market in India. The consideration if at all paid by the German company was for helping the said company for finding its market in India, it is not a consideration for the use outside India of any patent, invention, design or registered mark which was developed by the assessee. The tax incentives contemplated under section 80-O is basically for encouraging Indian companies/experts to export their know-how and skill abroad. Mere supply of pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
