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TMI Blog2004 (11) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... lfilled the conditions as prescribed under section 80-O of the Income-tax Act, 1961, to be eligible for deduction?" The assessee received commission income of Rs. 92,59,066 as buying agents of foreign enterprises, namely, M/s. G.J. Coles (P.) Ltd., Australia, and M/s. K. Mart of U.S.A. The assessee claimed deduction under section 80-O of the Act on this commission income. The assessee explained that it was entitled to deduction under section 80-O of the Act as: (i) it is a registered partnership firm and resident in India; (ii) commission has been received in convertible foreign exchange; and (iii) it earns income by way of commission in consideration, for the use outside India, of information concerning commercial knowledge, experience or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is not claiming it as technical services being rendered by it. The term used as 'commercial knowledge, experience or skill made available or provided to outside enterprise by the assessee.' This is the basis of the assessee's claim to deduction under section 80-O of the Act. Can the Department say that the assessee is not providing the commercial knowledge acquired and developed by it? The sole basis of the claim of the assessee is that it is providing information concerning commercial knowledge, experience and skill to outside parties' for its use 'outside' India." It is also to be noted that considering the facts and material placed on record, the Commissioner came to the conclusion that the assessee who provides industrial or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alings in foreign exchange, there 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". The first part of section refers to the gross income of the assessee. It includes any income by way of royalties, commission, payment received by the assessee. The second part indicates the source, such as, from the Government of a foreign State or foreign enterprises. The third part has two sub-parts, one reads as--"in consideration for the use outside India of any patent, invention, model, design, secret formula or process, or similar property right, or information concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e pointed out, by drawing our attention to sub-section (4) of section 260A of the Act, that in the instant case there is no question of law as it is dependent on facts only. It is neither a case of mixed question of fact and law nor a substantial question of law, but, one entirely on the facts which, in any event, has been concluded by the Tribunal after examining the case in detail. In our opinion, in keeping with the interpretation to be given to the provisions of section 80-O as indicated above, there is much substance in what learned counsel for the assessee has submitted that the matter is substantially on the question of facts rather than on the question of law and, therefore, we dismiss the appeal without adverting to the question. X X X X Extracts X X X X X X X X Extracts X X X X
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