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 is whether the Tribunal was justified in confirming the order of the C.I.T. (Appeals) allowing deduction under Section 80-O of the Income Tax Act as it stood then, for the foreign exchange earnings from abroad for commercial information supplied by the assessee to foreign parties. We have heard Senior Standing Counsel appearing for the Revenue and counsel appearing for the respondent. 2. Admittedly the amount in respect of which claim is made and allowed by the appellate authorities is convertible foreign exchange paid by foreign enterprises to the assessee. It is the finding of the lower authorities that these foreign enterprises have given confirmation letters stating that payment made to the assessee is for furnishing information pertaining to market conditions in India in respect of export commodity namely, marine products. We notice from Section 2 80-O that payment received from foreign enterprises for supply of information concerning industrial, commercial or scientific knowledge qualifies for deduction. The assessee furnished entire materials before the first appellate authority who was satisfied that the payments received in foreign exchange from foreign buyers is for the commercial information furnished by the assessee. The assessee has long term experience as a marine exporter and consequently assessee has the requisite expertise to collect and furnish relevant information to foreign enterprises for which they made payment, is the finding of the first appellate authority which was confirmed by the Tribunal. In view of the finding of fact on these matters i.e. payment received is towards consideration for the commercial information furnished by the assessee and since the foreign enterprises have given confirmation letters confirming the claim of the assessee by the first appellate authority and the Tribunal, we do not find any question raised by the department as a 3 substantial question of law warranting interference by us. We, therefore, dismiss all the appeals filed by the department. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms