S. 80-O : Royalties – Foreign enterprises – services rendered in India and not the ‘services rendered from India -Merely having a contract with a foreign enterprise and mere earning foreign exchange does not ipso facto lead to the application of S. 80-O of the Act- Without any claim for expertise capable of being used abroad rather than in India, would not be entitled to deduction- The burden is on the assessee to prove eligibility to an incentive or exemption provision and it is subject to strict interpretation – Interpretation of taxing statutes – When there is ambiguity in exemption which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue.
Ramnath and Co v. CIT ( 2020) 425 ITR 337/ 315 CTR 217/ 272 Taxman 275 / 190 DTR 1( SC) www.itatonline.org Editorial : CIT v Ramnath & CO (2016) 388 ITR 307/289 CTR 355/(2017) 79 taxmann.com 416 (Ker) (HC) is affirmed .