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TMI Blog2007 (9) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 67,82,500 as consultancy fee payable in US Dollars. The assessee was to support Whirlpool operations located at Faridabad, India in the development of Master Facility and Productivity Study. For the relevant assessment year, the assessee claimed deduction of ₹ 60,46,224 under section 80-O being 50 per cent of the gross income amounting to ₹ 1,20,92,449 in respect of the consultancy services provided to foreign clients. The said amount was received in US dollars. 3. The Assessing Officer held that the fees received for such services would not be eligible for deduction under section 80-O of the Act since no services had been rendered outside India to a foreign Government or enterprise as contemplated by that provision. 4. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a person (other than a company) who is resident in India includes any income by way of royalty, commission, fees or any similar payment received by the assessee from the Government of a foreign State or a foreign enterprise in consideration for the use outside India of any patent, invention, model, design, secret formula or process, or similar property right, or information 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e India [i.e., item (b) above] shall include services rendered from India but shall not include services rendered in India. A question has been raised as to whether the benefit of section 80-O would be available if the technical and professional services, though rendered outside India, are used by the Foreign Government or enterprise in India. The matter has been considered by the Board. It is clarified that as long as the technical and professional services are rendered from India and are received by a Foreign Government or enterprise outside India, deduction under section 80-O would be available to the person rendering the services even if the foreign recipient of the services utilises the benefit of such services in India." [Empha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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