Substitution of new section for section 80-O

Section 21 of the Finance Act, 1971 deals with substitution of new section for section 80-O. Substitution of new section for section 80-O. The Act was enacted on 10 Aug 1971.

Substitution of new section for section 80-O.

21. For section 80-O of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1972, namely: —

Deduction in respect of royalties, etc from certain foreign enterprises.

"80-O, (1) Where the gross total income of an assessee, being an Indian company or a person (other than a company) who is resident in India, includes any income by way of royalty, commission, fees or any similar payment received by the assessee from the Government of a foreign State or a foreign enterprise in consideration for the use outside India of any patent, invention, model, design, secret formula or process, or similar property right, or information concerning industrial, commercial or scientific knowledge, experience or skill made available or provided or agreed to be made available or provided to such Government or enterprise by the assessee, or in consideration of technical services rendered or agreed to be rendered outside India to such Government or enterprise by the assessee, under an agreement approved by the Board in this behalf, there shall be allowed, in accordance with and subject to the provisions of this section, a deduction of the whole of such income, in computing the total income of the assessee:

Provided that the application for the approval of the agreement referred to in this sub-section is made to the Board before the 1st day of October of the assessment year in relation to which the approval is first sought:

Provided further that approval of the Board shall not be necessary in the case of any such agreement which has been approved for the purposes of the deduction under this section by the Central Government before the 1st day of April, 1972, and every application for such approval of any such agreement pending with the Central Government immediately before that day shall stand transferred to the Board for disposal.

(2) Where the assessee is a person other than a company or a cooperative society, the deduction under sub-section (1) shall not be admissible unless the accounts of the assessee for the previous year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the assessee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth Such particulars as may be prescribed.".

[Finance (No.

2) Act, 1971]

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Section 21, The Finance Act, 1971 (Act 32 of 1971).