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TMI Blog2004 (5) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... ghtly understood, remuneration is the compensation paid for services rendered. There is no concept of adjusting expenditure against such remuneration. Remuneration is not in the nature of business receipts. The setting off of expenditure against receipt is necessary where the income is required to be computed. In the case of remuneration there is no cause for any such computation. This is because the remuneration is always predetermined on the basis of the terms of the service contract. The computation of remuneration is not dependent on the turnover or price level, etc. as in the case of business profit. The remuneration is fixed either on time basis or on piece basis. It is to be seen that remuneration is always predetermined. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee against the receipt of remuneration and only the net of the remuneration was considered. This was confirmed by the Commissioner of Income-tax (Appeals), against which the present appeal is before us. 4. Learned counsel appearing for the assessee contended that the concept of net amount is not applicable to the deduction envisaged under section 80RRA. Learned counsel stated that this is because of the fundamental distinction between the concept of receipt under section 80RRA and receipts under the provisions of section 80-O and the like. Learned counsel pointed out that in the case of deductions coming under section 80-O and other similar provisions, the deduction is available to the income accrued to the assessee under specified circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80RRA as introduced by the Finance Act, 1975, are explained (Circular No. 169, dated June 23, 1975 Taxman s Direct Tax Circular with Judicial Analysis, Volume 4, Edition 1999 page 2.646). 7. The learned Departmental representative on the other hand submitted that the Commissioner of Income-tax (Appeals) has discussed the matter in a very detailed manner on the basis of relevant case law and has come to a judicious finding that the expenditure incurred by the assessee for earning remuneration needs to be set off and the net amount alone needs to be considered for the purpose of section 80RRA. The learned Departmental representative further submitted that various other sections like 80-O are analogous in nature and therefore the judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis. It is to be seen that remuneration is always predetermined. Therefore, the concept of netting cannot be deployed while working out the deduction in the context of remuneration. 9. We therefore accept the contention of the assessee and allow the ground raised by the assessee. We direct the Assessing Officer not to deduct any expenditure from the remuneration included in the course of total income of the assessee and give the deduction on the whole of the remuneration as such. 10. Learned counsel has raised an alternate ground that if at all expenses are to be deducted from the gross remuneration, the deduction may be confined to such direct expenditure attributable to earning of remuneration. If deduction of expenses is called for, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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