TaxTMI 
TaxTMI 
2006 (2) TMI 81
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....provide accountancy and management services for a period of 36 months from October 1, 1999, to September 30, 2002. True copy of the said agreement is "annexure P-1"to the writ petition. Clause 3 of the said agreement states as under: "3. Service under this agreement is to be rendered only by communicating in writing and transmitting to the company to its head quarters at Tokyo or to such other place outside India as may be specified, the advice, suggestions, information, etc. The communication is to be through appropriate medium of communication in person or by way of mail, fax, etc. It is the agreement between the parties that the services are rendered only when the information, advice, etc., is received in writing by company outside....
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....) Desk Officer (FTD)." Thereafter, the petitioner filed a detailed representation dated March 20, 2000, vide "annexure P-4"). Para. 1 of the said letter states as under: "1. I have indicated at item 10 of the application that services are to be rendered outside India during the three years period from 1-10-1999 to 30-9-2002. The contract is for Rs. 40 million. Service of this magnitude over a period of three years envisages extensive stay outside India and would not be possible without extensive travel to various countries in which employer has substantial interest. As a matter of fact, I am scheduled to proceed to USA and Canada in the first week of May, 2000, and stay there for as long a period as more than six weeks. Many more j....
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....ancial years in question. Before dealing with the contentions of learned counsel for the parries, we may refer to section 80RRA(1) of the Income-tax Act which states as follows: "80RRA.(1) Where the gross total income of an individual who is a citizen of India includes any remuneration received by him in foreign currency from any employer (being a foreign employer or an Indian concern) for any service rendered by him outside India, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the individual, a deduction from such remuneration of an amount equal to- ..." Learned counsel for the petitioner relied on the decision of the Supreme Court in CBDT v. Aditya V. Bi....
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....ountries but he has not stated that he actually went to foreign countries and rendered the service in question to the foreign employer while he was physically present outside India. Learned counsel for the appellant has relied on the judgment of the Karnataka High Court in A.S. Mani v. Union of India [2003] 264 ITR 5, in which a learned single judge of the Karnataka High Court held that it was not necessary for a technician to be physically present outside India for the purpose of deduction under section 80RRA of the Act. We regret our inability to agree with the view taken by the learned single judge of the Karnataka High Court. A bare perusal of section 80RRA of the Act clearly indicates that a person has to be physically present ou....