| Case ID |
2ddf5f9f-3798-4a96-bf02-45954ea31578 |
| Body |
View case body. Login to View |
| Case Number |
WRIT APPEAL NOS. 6259 AND 6562 OF 2003 (T-IT) |
| Decision Date |
Sep 12, 2008 |
| Hearing Date |
|
| Decision |
The court held that for a citizen of India to be entitled to deductions under section 80RRA of the Income-tax Act, 1961, it is essential that the remuneration must be received in foreign convertible currency for services rendered outside India. The court overturned the single judge's ruling, emphasizing that physical presence outside India is a necessity to qualify for such deductions. The interpretation of the statute must align with legislative intent, and the court clarified that services rendered while remaining in India do not qualify for the deduction under section 80RRA. |
| Summary |
This case revolves around the interpretation of section 80RRA of the Income-tax Act, 1961, concerning the eligibility for tax deductions on remuneration received for services rendered outside India. The Karnataka High Court examined the requirement of physical presence outside India as a condition for such deductions. The petitioners, who were technicians and consultants, argued that they should qualify for the deduction despite rendering services from India. However, the court concluded that the legislative intent clearly mandates that the services must be performed outside India to avail of the benefits under section 80RRA. The ruling reinforces the strict interpretation of tax laws and highlights the importance of fulfilling all stipulated conditions to claim deductions. |
| Court |
Karnataka High Court
|
| Entities Involved |
Not available
|
| Judges |
Manjula Chellur,
A.N. Venugopala Gowda
|
| Lawyers |
R.B. Krishna,
M.V. Seshachala,
G. Sarangan,
K.S. Ramabhadran
|
| Petitioners |
B.K. Sinha
|
| Respondents |
Secretary, Central Board of Direct Taxes
|
| Citations |
2009 SLD 2087,
(2009) 309 ITR 1,
(2009) 177 TAXMAN 483
|
| Other Citations |
A.S. Mani v. Union of India [2003] 264 ITR 5,
CBDT v. Aditya V. Birla [1988] 170 ITR 137,
C.S. Mathur v. CBDT [1999] 235 ITR 769,
Mahendra Raj v. Jt. Secretary, Government of India [2002] 257 ITR 569,
CIT v. Tara Agencies [2007] 292 ITR 444,
Bajaj Tempo Ltd. v. CIT [1992] 196 ITR 188,
Dadi Jagannadham v. Jammulu Ramulu AIR 2001 SC 2699
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
80RRA
|