Ita/468/2009 Of Commissioner Of Income Tax, Cochin v. Sreekumari P. Nair, Cochin

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN TUESDAY, THE 8TH DECEMBER 2009 / 17TH AGRAHAYANA 1931 ITA.No. 468 of 2009() --------------------- ITA.312/COCH/2002 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT ----------------------------- THE COMMISSIONER OF INCOME TAX, COCHIN BY ADV. SRI.P.K.R.MENON, (SR.), SC FOR INCOME TAX SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- SREEKUMARI P.NAIR SREEVAS EXPORT ENTERPRISES PARRY JUNCTION,THOPPUMPADY, KOCHI-5. ADV. SRI.T.M.SREEDHARAN SMT.C.K.SHERIN SRI.V.P.NARAYANAN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 08/12/2009, ALONG WITH ITA NOS.555, 656 & 736 OF 2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR &V.K.MOHANAN, JJ. .................................................................... I.T. Appeal Nos.468,555,656 & 736 of 2009 .................................................................... Dated this the 8th day of December, 2009. JUDGMENT Ramachandran Nair, J. The question raised in the appeals filed by the Revenue iswhether the Tribunal was justified in confirming the order of the C.I.T.(Appeals) allowing deduction under Section 80-O of the Income TaxAct as it stood then, for the foreign exchange earnings from abroad forcommercial information supplied by the assessee to foreign parties.We have heard Senior Standing Counsel appearing for the Revenueand counsel appearing for the respondent. 2. Admittedly the amount in respect of which claim is made andallowed by the appellate authorities is convertible foreign exchangepaid by foreign enterprises to the assessee. It is the finding of thelower authorities that these foreign enterprises have given confirmationletters stating that payment made to the assessee is for furnishinginformation pertaining to market conditions in India in respect ofexport commodity namely, marine products. We notice from Section 80-O that payment received from foreign enterprises for supply ofinformation concerning industrial, commercial or scientific knowledgequalifies for deduction. The assessee furnished entire materials beforethe first appellate authority who was satisfied that the paymentsreceived in foreign exchange from foreign buyers is for the commercialinformation furnished by the assessee. The assessee has long termexperience as a marine exporter and consequently assessee has therequisite expertise to collect and furnish relevant information to foreignenterprises for which they made payment, is the finding of the firstappellate authority which was confirmed by the Tribunal. In view ofthe finding of fact on these matters i.e. payment received is towardsconsideration for the commercial information furnished by the assesseeand since the foreign enterprises have given confirmation lettersconfirming the claim of the assessee by the first appellate authority andthe Tribunal, we do not find any question raised by the department as a substantial question of law warranting interference by us. We,therefore, dismiss all the appeals filed by the department. C.N.RAMACHANDRAN NAIRJudge pms V.K.MOHANANJudge