In Brief
B.L. Passi, a commercial consultant, claimed a 50% deduction under Section 80-O of the Income Tax Act for providing industrial and commercial information and blue prints to Sumitomo Corporation (Japan) for a SAFARI project. The Supreme Court dismissed his appeal, holding that his services were managerial/agent services, not 'technical services' within the statute's meaning. The court found he failed to produce the blue prints or documentary evidence showing products were actually developed or sold based on his information, and the compensation structure (5% of future sales) was conditional on positive business results—never satisfied. Without evidence substantiating the claim's factual and legal foundations, the appellant could not discharge his burden of proof for the statutory deduction.">
The lawyer headnote and full judgment text are available to registered users.