1992 (1) TMI 74 - HC - Income Tax

Court directs reconsideration of refusal to approve foreign technical services agreements, citing Income-tax Act provision.

The court set aside the Board's refusal to approve agreements for technical services provided abroad, directing a reconsideration within four weeks. If ... Special Deduction Issues: Interpretation of section 80-0 of the Income-tax Act regarding agreements for technical services provided abroad.Analysis:The petitioners had applied for approval of two agreements with a company in Dubai for the provision of technical services abroad. The Board, however, refused approval citing that the agreements were for the mere supply of technical personnel and not within the scope of section 80-0. The Board doubted the genuineness of the agreements due to the absence of specific provisions for back-up services or accountability for the technicians' work. The judge noted that if the petitioners were indeed providing technical services abroad and earning foreign exchange, it fell within the ambit of section 80-0. The judge disagreed with the Board's objection and set aside their order, directing the Board to reconsider and pass a suitable order within four weeks. The assessment order would be amended accordingly if the Board approved the agreements. The judge disposed of the writ petition without costs.