16. In construing the wording of a Section avowed purpose for which the section has been introduced has also to be considered. While introducing the Section, the purpose of the same has been clarified by the CBDT in para 48 vide Their Circular No- 22 dated 17.07.1969. which is reproduced below:-.
“48. The Finance Act, 1969 has inserted a new Section 80RR in the Income-tax Act with effect from Ist April, 1979 under which a resident individual being an author, playwright, artist, musician or actor who derives income in the exercise of his profession from foreign sources and receives such income in India or brings it into India in foreign exchange, will be entitled to deduct 25% of the Income so received or brought in computing his total income. This provision is designed to encourage successful authors, playwrights artists, musicians and actors in our country to project their activities outside India with a view to contributing to greater understanding of our country and its culture abroad and also augmenting ovr foreign exchange resources. Some of the professional activities coming within the scope of this Section are; publication outside India of a book produced by the author, contribution of articles to foreign journals and magazines, exhibition of paintings., sculptures and other works of art in foreign countries, giving of music concent to foreign audiences and acting in dramatic performances cinematograph films and television programmes in foreign countries.
17. It is very clear that section has been introduced to encourage the successful author, playwright, artists to project their activities outside India with a view to contributing to greater understanding of cur Country and our culture abroad. Some of the professional activities are coming within the scope of this section are; publication outside India of a book produced by the author, contribution of articles to foreign journals alia magazines, exhibition of paintings, sculptures and other works. I: is therefore clear that the purpose of introducing Section 80RR is in respect of income derived from exercise of the profession to which the Section applies viz., author, playwrights, artists etc., Section cannot be interpreted to mean that in respect of author who has derived income by exercising of profession which has no connection whatsoever with his authorship would be entitled to deduction under Section 80RR The section has been introduced to showcase the successful professionals in -lie listed fields. The income of the authors from abroad from exercise of his profession of a authorship will be entitled to exemption.
18. We find that if this interpretation is to be accepted, then it may lead to unintended results. Merely because a person can sing or play games, and therefore be called a musician or a sportsman, all his professional income from abroad will be entitled to exemption u/s 30RR. This does not appear to be the legislative intent. The purpose is to boost the profession of authorship, playwright, acting, sport etc., by granting exemption for income earned from exercising these professions abroad. in the instant case the assessee has showcased his capacity and competence as a chartered accountant by authoring the bock and not the otherway about viz., by providing professional advice he i s showcasing his capacity as an author.
19. The assessee vide letter dt. 5.9.2000 has narrated the nature of services rendered to the foreign clients which consists of attending ;o their legal matters in India and giving advice in connection with certain FERA matters. Therefore the assessee has given only legal consultation “0 foreign clients, which does not amount to profession of author
20. While the statute is to be interpreted on the basis of the; plain language or terms of the sections need for interpretation when the words of the statute are ambivalent and do not manifest the intention of the Legislature. As explained above the interpretation canvassed by the assessee will lead to unintended results if the purpose for which the section is introduced is kept in mind. Therefore in our option a purposive approach has to be adopted in interpreting the provisions of sec 80 RR.
23. In the circumstances, we hold that the income earned by the assessee by exercise of his profession as a Chartered Accountant and which is nothing to do with the exercise of the profession as a author will not be entitled to relief under Section 80RR. Accordingly, we uphold the order of the CIT(A) in this point and dismiss the appeal of the assessee.