9911796707
TMI Blog1981 (9) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... n Research Centre of the United States of America under which the Indian Institute had to furnish the American Centre, from time to time, with its know-how on measurement of public opinion and research in consideration of a payment of US dollars 375 per quarter and expenses. The details of this agreement are not relevant for our present purpose. It is sufficient to say that under cl. 6 of the agreement, it was to remain in force for a period of 12 months. The clause, however, provided that the agreement " thereafter shall remain in force until determination at any time by three months notice in writing by either of the parties ". It is not in dispute that the agreement has not been determined by either of the parties and that it continued t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember 31, 1968, the ITO granted the assessee relief under s. 80-0 when he completed its assessment on the 18th February, 1970. Subsequently, however, he seems to have had second thoughts about it. He came to the conclusion that, as per para. 6 of the agreement, the agreement was to remain in force for a period of 12 months only and that thereafter the company had to make or enter into a fresh agreement with the American Institute and obtain the approval of the Government for it before October 1, 1969, in order to obtain relief under s. 80-O for the assessment year 1969-70. He, therefore, proposed to rectify the assessment under s. 154 of the Act and to withdraw the deduction granted to the assessee earlier under s. 80-0. After issuing notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... months but even beyond that time as it had not been determined by a written notice of either party as stipulated in that clause. Learned counsel for the applicant, however, contended that on a proper construction of s. 80-0 it is necessary for an assessee, who claims exemption under this section, to obtain an approval in relation to every assessment year before the first day of October of that assessment year. He derives support for this construction of the section by referring to the section as it was amended w.e.f. April 1, 1972, by the Finance (No. 2) Act, 1971. Apart from certain changes in the body of the section, which are not relevant for our present purposes, the portion of the amended section, on which the learned counsel relied, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the agreement as such and it is not the department's case that it was in any way limited. It is also common ground that this agreement was approved by the Central Govt. on the second of February, 1968, which Was long before the first day of October, 1968. The conditions for the exemption under s. 80-0 are, therefore, fulfilled in the present case. The reference to " relevant assessment year " is perhaps intended to cover cases where there is more than one agreement and it becomes important to consider whether the particular agreement in force in a particular assessment year has received approval. For instance, in this very case, if the agreement of January 1, 1967, had expired on December 31, 1967, the assessee would not have been ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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