2014 (12) TMI 845

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....g the activity of conducting service for the benefit of foreign companies or agencies. After conducting survey on the assigned subject, the reports are submitted to the foreign agencies. Section 80-O of the Act provides for deduction of profits derived from such activity, up to certain extent. 3. In the returns submitted by the respondent for the assessment year 1994-95, it claimed deduction under Section 80-O of the Act. The Assessing Officer denied the deduction on the ground that the survey report was submitted in India and thereby, Section 80-O of the Act is not attracted. Aggrieved by that, the respondent filed an appeal before the Commissioner of Income Tax (Appeals). The appeal was allowed through order, dated 27.08.1997. Challengin....

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.... 1992A: Deduction in respect of royalties, etc., from certain foreign enterprises:     (1) 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 scientific knowledge, experience or skill made available or provided for agreed to be made available or provided to such Government or enterprise by the ass....

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....erprise 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.     From a perusal of this, it becomes clear that an assessee must comply with certain conditions to qualify for benefit under Section 80-O of the Act. The conditions are (a) industrial, commercial, scientific knowledge, experience or skill must be rendered by a person or agency within India (b) the service so rendered must be for the benefit of foreign State or foreign enterprise; (c) the consideration therefor must be in foreign exchange and (e) the service must be for use outside India. 7. In the instant....