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Supreme Court of India 2020-06-05

Ramnath & Co vs Commissioner of Income Tax

Bench: 2 — <UNKNOWN>, <UNKNOWN>

In Brief

The Supreme Court upheld a High Court judgment dismissing an income tax deduction claim under Section 80-O of the Income Tax Act, 1961. Ramnath & Co sought 50 percent deduction on income from technical services to foreign enterprises. The Court held that services eligible for deduction must be rendered 'from India' (not 'in India') and involve genuine imparting of technical know-how or information influencing business decisions. The appellant failed to provide evidence of specific consideration for qualifying activities. The judgment emphasizes the importance of distinguishing between services rendered 'from India' versus 'in India' and requires claimants to substantiate that the income received specifically relates to eligible services under Section 80-O."

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Income Tax Tax Deduction Intellectual Property Technical Services Section 80-O

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