JUDGMENT :

R.K. Agrawal, J.

1. The above appeal has been filed against the judgment and order dated 13.12.2006 passed by the High Court of Delhi in I.T. Appeal No. 1198 of 2006 whereby the Division Bench of the High Court dismissed the appeal filed by the appellant herein against the order dated 10.10.2005 passed by the Income Tax Appellate Tribunal, Delhi Bench (in short ‘the Tribunal’) in ITA No. 1603/D/2002.

2. Brief facts:

(a) The Appellant herein filed return disclosing income of Rs. 57,40,360/- for the Assessment Year (AY) 1997-98 while claiming deduction of Rs. 58,87,045/- under Section 80-O of the Income Tax Act, 1961 (in short ‘the IT Act’) on a gross foreign exchange receipt of Rs. 1,17,74,090/- received from Sumitomo Corporation, Japan. Sumitomo Corporation was interested in supplying dies for manufacturing of body parts to Indian automobile manufacturers and entered into a contract with the Appellant under which the services of the Appellant herein were engaged by using his specialized commercial and industrial knowledge about the Indian automobile industry. Sumitomo Corporation also agreed to pay remuneration at the rate of 5% of the contractual amount between Sumitomo Cor