O.K. Narayanan, Accountant Member - (1.) THIS appeal is filed by the Assessee for the Asst. Year 1998-99. The appeal is filed against the order of the CIT(A)-XXIII at Mumbai dated 19-5-2000 and arises out of the assessment completed Under Section 143(3) of the Income-tax Act, 1961.
(2.) The first issue raised in this appeal is that the CIT(A) has erred in confirming the deduction Under Section 80RRA of the Income-tax Act, 1961, at 75 per cent of the net remuneration of Rs. 96,143 after deducting total expenses incurred from the gross remuneration received from M/s. Citizen Watch Co. Ltd. Hongkong. The Assessee having received remuneration for services rendered outside India had claimed the deduction available Under Section 80RRA. The Assessing Officer while computing the deduction adjusted the expenditure incurred by the Assessee against the receipt of remuneration and only the net of the remuneration was considered. This was confirmed by the CIT(A), against which the present appeal is before us.
(3.) THE learned Counsel appearing for the Appellant Assessee contended that the concept of "net amount" is not applicable to the deduction envisaged Under Section 80RRA. THE learned Counsel stated that this is because of the fundamental distinction between the concept of receipt Under Section 80RRA and receipts under the provisions of Section 80-O and the like. THE learned Counsel pointed out that in the case of deductions coming Under Section 80-O and other similar provisions, the deduction is available to the "income" accrued to the Assessee under specified circumstances and included in his gross total income. THE learned Counsel pointed out that as far as Section 80RRA is concerned the deduction is not available on "income" but the deduction is available on "remuneration". THErefore the speaking distinction between "income" and "remuneration" needs to be understood in the light of correct legal perspective. If so understood, there is no question of any netting, while computing deduction available Under Section 80RRA.;