Judgment

D.P. Wadhwa, J.—Central Board of Direct Taxes (CBDT) is in appeal. It is aggrie­ved by the judgment dated May 29, 1981 of a Division Bench of the Delhi High Court quashing its non approval under Section 80-O of the Income Tax Act, 1961 (for short ‘the Act’) to an agreement dated November 29, 1969 entered into by the respondent with M/s. Soaltee Hotel Pvt. Ltd. Kathmandu (Nepal) a foreign enterprise. Section 80-O is as under:

“80-O. Where the gross total income of an assessee being an Indian company 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