TaxTMI 
TaxTMI 
2010 (3) TMI 893
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....any had entered into technology licence agreements ('TLAs') with Hazira Port Private Limited ('HPPL'). Under the terms of the agreement, the assessee-company was required to provide a non-exclusive licence of technology and related intellectual property to HPPL and HLPL, for use by them in the development of port and LNG terminal at the Hazira Port ("Hazira project"). During the financial year ending March 31, 2003, the following amounts were computed in accordance with rule 115 of the Income-tax Rules, 1962, i.e., by applying the telegraphic transfer buying rate on the date on which the tax was required to be deducted and accrued to the assessee under the technology licence agreements : (1)Rs. 247,348,686 from HPPL ; and (2)Rs. 480,1....
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.... 2.During the course of assessment proceedings, the learned Assessing Officer requested the appellant to furnish explanation along with relevant documentation in support of income claimed exempt under section 10(6A) of the Act. 3.In response to the aforementioned query, the appellant vide its submission dated November 17, 2005 submitted that it fulfils all the conditions specified under section 10(6A) of the Act and accordingly is eligible for the benefit provided therein. However, the learned Assessing Officer has disregarded the reply furnished by the appellant and has disallowed the exemption without providing any specific reason in the assessment order. 4.The appellant humbly submits that the learned Assessing Officer did not prov....
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....ides exemption in case of a foreign company which is deriving income by way of royalty or fees for technical services from an Indian concern in pursuance of an agreement made by the foreign company with the Indian concern (prior to June 1, 2002), which has been approved by the Central Government. 10.Section 10(6A) of the Act is reproduced below : 'where in the case of a foreign company deriving income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976 but before the 1st day of June, 2002 and,- (a)where the agreement relates to a matter included in the industrial....
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....nd HLPL (Indian concerns), in pursuance of technology licence agreements which are approved by the Central Government. The technology licence agreements were entered into prior to June 1, 2002 and are therefore, eligible for exemption under section 10(6A) of the Act. 12.In view of the above, Indian income-taxes borne by HPPL and HLPL on payments to SGBV under the technology licence agreements are exempt in the hands of SGBV." 5. After considering the aforesaid submissions, in the impugned order, the learned Commissioner of Income-tax (Appeals) directed the Assessing Officer to grant exemption under section 10(6A) of the Act for the detailed reasons given in paragraph 3.2 on page 4, which reads as under : "3.2 I have carefully consi....
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.... Assessing Officer disallowed the claim under section 10(6A) of the Income-tax Act, 1961. He accordingly contended that the order of the learned Commissioner of Income-tax (Appeals) be set aside and the matter be restored to the file of the Assessing Officer with a direction that the Assessing Officer may re-examine the claim and read judicatewhether the assessee is entitled to exemption under section 10(6A) as claimed in the revised return of income. 8. On the other hand, Shri Dhinal Shah, learned counsel appearing on behalf of the assessee vehemently objected to the aforesaid submission of the learned Departmental representative for the Revenue. He submitted that all the details and documents were furnished before the Assessing Officer....
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....any other case, the agreement is approved by the Central Government, the tax on such income is payable, under the terms of the agreement, by Government or the Indian concern to the Central Government, the tax so paid: Explanation.-For the purposes of this clause and clause (6B)- (a)'fees for technical services' shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9 ; (b)'foreign company' shall have the same meaning as in section 80B ; (c)'royalty' shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9 ;" 11. It is pertinent to note that the agreement made by the assessee-company with the Indian concern, namely M/s. Essar group is before the 1-....