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TMI Blog2010 (3) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... ng officer denied the benefit of deduction under section 80-O. The Tribunal confirm the decision of Commissioner (Appeals). Held that-dismissing the appeal, that it had not been disputed that the assessee did as a matter of fact provide the designs. Nor was it disputed that the designs provided by the assessee were used outside India. Moreover, it was an admitted position that income in convertible foreign exchange was received by the assessee in India. The assessee was entitled to special deduction under section 80-O for the assessment year 200-04. - 2625 of 2009 - - - Dated:- 30-3-2010 - DR. D. Y. CHANDRACHUD and J. P. DEVADHAR JJ. Ram Upadhyay for the appellant. Atul K Jasani and P. C. Tripathi for the respondent. JUDG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to a deduction under section 80-O. The Tribunal confirmed the decision of the Commissioner of Income-tax (Appeals). The Tribunal has relied upon its own order dated November 12, 2008, pertaining to the assessment year 2002-03 and upon a decision of the Mumbai Bench of the Tribunal in Mrs. Sheila Anil Paul v. Asst. CIT [2004] 90 ITD 605. 3. The issue before the court is as to whether the assessee had fulfilled the conditions specified in section 80-O. During the previous year relevant to the assessment year in question, the assessee had two contracts - the first relating to the development of a new Brain and Cognitive Centre for Massachusetts Institute of Technology and the second in respect of the Ismaih Centre, Toronto. Under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and dealings in foreign exchange. The deduction that is allowed is in terms of the provisions of section 80-O, and varies between 40 per cent. for the assessment year beginning on April 1, 2001, and 10 per cent. for the assessment year beginning on April 1, 2004. No deduction was to be allowed for any assessment year beginning on April 1, 2005 or any subsequent assessment year. 5. The principal requirement of the section, which is a matter of inter pretation in this case is that the income must be received in convertible foreign exchange from a foreign enterprise (defined by Explanation (ii) to mean a person who is a non-resident) in consideration for the use outside India of any patent, invention, design or registered trademark. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scription outside India, the benefit of the deduction would have to be granted. The assessee had prepared designs in India and had supplied them to its foreign counterpart outside India in pursuance of the contracts noted earlier. Explanation (iii) to section 80-O clarifies that services rendered or agreed to be rendered outside India, would include services rendered from India but not to include services rendered in India. There is no dispute about the fact that the designs were supplied and used outside India. All the conditions requisite for an exemption under section 80-O were fulfilled. 7. Before concluding, it would be necessary to note that though in the question which has been formulated in the memo of appeal, there is a referen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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