9911796707
TMI Blog1997 (7) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... He no doubt returned to India in April 1996 and has been resident in India since then. However, having been a non-resident during the financial year preceding the application, he is entitled to maintain this application under section 245Q(1) of the Act. 2. The applicant seeks the ruling of this Authority on the following question: Whether under the facts and circumstances stated in the Statement of Facts, the applicant is entitled to deduction under section 80-O of the Act in respect of consideration received in terms of the consultancy agreement entered into between the applicant and Mabanaft AG, Switzerland. 3. The applicant left India in August 1990 and returned to India in April 1996. He entered into an oral agreement of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... broad. 6. The applicant seeks exemption under section 80-O of the Act for the consideration received by him under the above agreement. Section 80-O of the Act reads as under : Deduction in respect of royalties, etc., from certain foreign enterprises.- Where the gross total income of an assessee, being an Indian company 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the law for the time being in force for regulating payments and dealings in foreign exchange; (ii)'foreign enterprise' means a person who is a non-resident; (iii)services rendered or agreed to be rendered outside India shall include services rendered from India but shall not include services rendered in India. 7. The only question for consideration is whether the sums received by the applicant fall within the scope of the words in italics above. According to the applicant, the services rendered by him to Mabanaft will fall under the term 'professional services'. Further, the applicant contends that under Explanation (iii ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson. The department also argued that there was no evidence of information being actually transmitted from India abroad. It was also argued that the information provided by the applicant was of a general or routine nature and his services could hardly be characterised 'technical services'. It was stated that no documentary proof had been furnished in this regard. The department, therefore, pleaded that the application be referred to the Assessing Officer. These arguments were refuted by Shri Ramasubramanian. He emphasized that the services rendered by the applicant did involve exercise of intellectual skill and as such were covered by section 80-O. He said the information given to Mabanaft cannot be shared with others as it may resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined by Shorter Oxford Dictionary thus : (1) If a person : having knowledge of or expertise in a particular art, science or other subject; (2) Pertaining to, involving or characteristic of a particular art, science, profession or occupation, or the applied arts and sciences generally. The definition is, thus, very wide. There can be no doubt that the applicant has special knowledge in the production, imports and other aspects pertaining to the oil industry. Also, a reference to the terms of situation (a) referred to above will also indicate that services in industrial and commercial branches are intended to be covered by the section. 13. The only question that survives is whether the applicant can be said to be rendering ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
