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TMI Blog2014 (4) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer issued notice dated 27.09.2000 under Section 148 of the Act for reopening the assessment. On receipt of the notice, the assessee vide letter dated 13.10.2000 requested the Assessing Officer to treat the returns filed on 29.10.1997 as the returns filed in response to the notice under Section 148 of the Act. Further requested the Assessing Officer to furnish a copy of the reason recorded for initiating reassessment proceedings. In pursuance of the notice, an authorized representative of the assessee appeared and produced necessary documents and argued the matter. The Assessing Officer after hearing the matter on various dates held that the assessee is not entitled for the benefit of deduction under Section 80-O of the Act since the assessee has rendered service in India as per Explanation (iii) to Section 80-O of the Act. Accordingly, by its order dated 26.12.2001 reassessed the income of the assessee under Section 143(3) of the Act and demanded interest under Sections 234-B and 234-C of the Act. 3. The assessee being aggrieved by the reassessment order dated 26.12.2001 passed under Section 143(3) of the Act preferred an appeal before the Commissioner of Income-T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer for reappraisal of the opinion already reached and change of opinion is not permitted under the law. Hence, reopening of the assessment is without jurisdiction. He further submitted that the Assessing Officer had failed to furnish the reason for reopening the assessment. The Appellate Authority failed to appreciate the Circular dated 23.03.1995 issued by the CBDT. He submitted that the assessee is an advocate by profession. He entered into a Retainer Agreement with M/s. Buckeye Corporation Private Limited. He has given legal opinion on all matters required by the company, since the said company wanted to establish an industry in India. The assessee being the resident of India has fulfilled all the conditions as prescribed under Section 80-O of the Act. In consideration of professional service rendered or agreed to be rendered outside India, he received Fee in convertible foreign exchange and it was brought to India. Hence, he is entitled for deduction of 50% of the income so received or brought to India in computing total income of the assessee. The services rendered by the assessee is out of India to a Foreign Enterpriser. The circular issued by the CBDT vide C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer noticing some of the clauses of the agreement held that the services rendered by the assessee in relation to legal proceedings in the Court within the country to the clients who are stationed outside the country, though the payment has been made under the convertible foreign exchange, the said receipt will not fall under Section 80-O of the Act, more particularly, Explanation (iii) to Section 80-O of the Act. Some of the clauses of the agreement read thus: (i) That the Company hereby retains and appoints the said Advocate to act as its Advocate and to render all legal advice and give opinion on all matters required by the Company including but not limited to requisitions made therefore to the said Company and to represent it in all matters which may be pending in any of the Courts brought by or against the said Company and representations before any tribunal regulatory or administrative authority during the continuance of this agreement and to examine all abstracts of title, documents and correspondences and prepare all agreement and contracts and do all such acts and render all such legal services as the said Company or any of its officers or di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n concerning industrial, commercial or scientific knowledge, experience or skill made available or provided or agreed to be made available or provided to such Government or enterprise by the assessee, or in consideration of technical or professional services rendered or agreed to be rendered outside India to such Government or enterprise by the assessee, and such income is received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, is brought into India, by or on behalf of the assessee in accordance with any law for the time being in force for regulating payments and dealings in foreign exchange, they shall be allowed, in accordance with and subject to the provisions of this section, a deduction of an amount equal to fifty per cent of the income so received in, or brought into India, in computing the total income of the assessee,: Explanation - For the purposes of this Section, - (i) 'convertible foreign exchange, means foreign exchange which is for the time being treated by the RBI as convertible foreign exchange for the purposes of the law for the time bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the assessee is rendering services in India to a foreign company, hence he is not entitled for any deduction. 12. The judgments relied upon by the learned Senior Advocate are not applicable to the facts of the present case. In LI & FUNG INDIA PRIVATE LIMITED v/s COMMISSIONER OF INCOME-TAX, the Delhi High Court examined the matter with regard to the managerial services rendered by the assessee which falls under the technical services. In COMMISSIONER OF INCOME-TAX v/s INCHCAPE INDIA P. LTD., the Delhi High Court examined the services rendered with regard to the dyeing and testing divisions, whether it is technical service or not? Further in COMMISSIONER OF INCOME-TAX v/s EICHER CONSULTANCY SERVICES LTD., the Delhi High Court has dealt with providing consultancy services to the foreign company in Faridabad. The said judgments are not applicable to the facts of the present case. On the other hand, the judgment of Delhi High Court in ANAND AND ANAND v/s COMMISSIONER OF INCOME-TAX is squarely applicable to the facts of the present case. In the said case, the court was dealing with the legal services rendered by the Firm to a foreign company. The Delhi High Court after examining Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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