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TMI Blog2010 (3) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... . Essar group is before the 1-6-2002 - agreement has been approved by the Central Government prior to that date - all the conditions laid down for exemption under section 10(6A) are fully satisfied – exemption is available – in favor of assessee - IT APPEAL NO. 982 (AHD.) OF 2007 - - - Dated:- 12-3-2010 - T.K. SHARMA AND D.C. AGRAWAL, JJ. M.C. Pandit for the Appellant. Dhinal Shah for the Respondent . ORDER T.K. Sharma, Judicial Member. - This appeal filed by the revenue is against the order dated 8-12-2006 of the learned Commissioner of Income-tax (Appeals)-V, Ahmedabad, for the assessment year 2003-04. 2. Briefly stated the facts are that the assessee is a company incorporated in the Netherlands and is a tax resi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is not eligible for exemption under section 10(6A) of the Income-tax Act. In this assessment order, the Assessing Officer simply stated that after discussion and verification of the details submitted and keeping in view the revenue side, the income claimed under section 10(6A) is disallowed. No reasons in this regard has been given by the Assessing Officer. 4. On appeal before the learned Commissioner of Income-tax (Appeals), learned counsel for the assessee contended as under : "1.The learned Assessing Officer has erred on facts and in law in denying the exemption provided under section 10(6A) of the Act to the appellant, in pursuance of the technology licence agreements, entered into by the appellant with HPPL and HLPL without gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s : ( i ) Gautam Harilal Gotecha v. Deputy CIT [2006] 281 ITR 283 (Guj.); [2005] 200 CTR (Guj.) 139. ( ii ) CIT v. Bright Automotive and Plastics Ltd. [2006] 280 ITR 157 (MP). ( iii ) Sony India Ltd. v. CIT [2005] 276 ITR 278 (Delhi). 7.Without prejudice to the above and in addition, we would like to submit that the appellant is eligible for exemption under section 10(6A) of the Act. 8.Under the terms of article 3.7 of the technology licence agreements, any Indian income-taxes on the payments made by HPPL and HLPL were to be borne by HPPL and HLPL respectively. The appellant has claimed exemption under section 10(6A) of the Act in respect of the Indian income-taxes payable on income accruing under technology licence ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The income earned by SGBV is in the nature of royalty. The payment is in pursuance of an agreement made by the foreign company with the Indian concern. SGBV has entered into TLAs with HPPL and HLPL The agreement has been entered into before June 1, 2002. The TLAs were entered on May 31, 2002, i.e., before June 1, 2002. This fact has been evidenced by the attestation of the TLAs by the notary public. The agreement is approved by the Central Government The TLAs have been approved by the Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Secretariat of Industrial Assistance vide approval Letter No. FC.II. 2(98)/662(97) dated January 22, 2003. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee." 6. Aggrieved by this order of the learned Commissioner of Income-tax (Appeals), the revenue is in appeal before us on the following grounds : (1)The Commissioner of Income-tax (Appeals) has erred in law and on facts in directing the Assessing Officer to grant exemption under section 10(6A) of the Income-tax Act. (2)On the facts and in the circumstances of the case and in law, the Commissioner of Income-tax (Appeals) ought to have upheld the order of the Assessing Officer. 7. At the time of hearing, on behalf of the revenue Shri M. C. Pandit, the senior Departmental representative appeared and contended that various details and documents, which were furnished before the learned Commissioner of Income-tax (Appeals) were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns laid down for exemption under section 10(6A) of the Income-tax Act, therefore, the view taken by the learned Commissioner of Income-tax (Appeals) be upheld. 10. Having heard both the sides, we have carefully gone through the orders of the authorities below. At the relevant time, section 10(6A) read as under: "Where in the case of a foreign company deriving income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976 (but before the 1st day of June, 2002) and, ( a )where the agreement relates to a matter included in the industrial policy, for the time being in fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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