2004 (11) TMI 21

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....he court: "Whether the assessee has fulfilled the conditions as prescribed under section 80-O of the Income-tax Act, 1961, to be eligible for deduction?" The assessee received commission income of Rs. 92,59,066 as buying agents of foreign enterprises, namely, M/s. G.J. Coles (P.) Ltd., Australia, and M/s. K. Mart of U.S.A. The assessee claimed deduction under section 80-O of the Act on this commission income. The assessee explained that it was entitled to deduction under section 80-O of the Act as: (i) it is a registered partnership firm and resident in India; (ii) commission has been received in convertible foreign exchange; and (iii) it earns income by way of commission in consideration, for the use outside India, of information con....

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....rvices cannot be termed as technical services. The assessee is not claiming it as technical services being rendered by it. The term used as 'commercial knowledge, experience or skill made available or provided to outside enterprise by the assessee.' This is the basis of the assessee's claim to deduction under section 80-O of the Act. Can the Department say that the assessee is not providing the commercial knowledge acquired and developed by it? The sole basis of the claim of the assessee is that it is providing information concerning commercial knowledge, experience and skill to outside parties' for its use 'outside' India." It is also to be noted that considering the facts and material placed on record, the Commissioner came to the conc....

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....for the time being in force for regulating payments and dealings in foreign exchange, there shall be allowed, in accordance with and subject to the provisions of this section, a deduction of an amount equal to fifty per cent, of the income so received in, or brought into, India, in computing the total income of the assessee". The first part of section refers to the gross income of the assessee. It includes any income by way of royalties, commission, payment received by the assessee. The second part indicates the source, such as, from the Government of a foreign State or foreign enterprises. The third part has two sub-parts, one reads as--"in consideration for the use outside India of any patent, invention, model, design, secret formul....