TMI Blog1989 (12) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... d in September, 1971. An application was made to the Government of India for granting approval to the extension of the said agreement. The accounting year of the respondent is the calendar year. Therefore, for a period of three months in the calendar year 1971 relevant to the assessment year 1972-73 and thereafter till 1976 when the approval of the Government of India was obtained, the respondent company did not include in their return any royalty which had been agreed to be paid to it by the Indian company. However, a note was added in the covering letter to the return which was filed by the respondent, inter alia, to the effect that royalty would be payable after the approval has been obtained from the Government of India. It was also i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of tax provided no penalty was levied. It seems that penalty was levied and on a further appeal before the Incometax Tribunal, it was contended by the respondent that no part of the income had accrued in India or was taxable here and, secondly, for the years 1972-73 and 1973-74, there had been no omission on the part of the assessee to disclose any particulars and, as such, notices under section 147 (a) had not been validly issued. The Tribunal came to the conclusion that there was a business connection between the respondent and the Indian company but no part of the income was liable to be taxed in India as there was no evidence that an business operations had been carried out by the respondent in India. The Tribunal also came to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar during which the approval of the Central Government was accorded to the agreement between the assessee and Goodyear India Ltd. ? 7. Whether, on the facts and in the circumstances of the case, the proceedings under section 147(a) initiated in the case of the assessee are valid inasmuch as there was a failure to disclose truly and fully the material facts but only a means (sic) for such material fact had been disclosed ? 8. Whether, on the facts and in the circumstances of the case, the ground of appeal challenging the proceedings under section 147 having been voluntarily given up before the Commissioner of Income-tax (Appeals), it could be raised by the assessee and the Tribunal has jursidiction to admit the additional ground with reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1977] 108 ITR 335 and come to the conclusion that even though there was a business connection which existed between the assessee and the Indian company, no part of the technical fee accrued or arose in India. In the present case, the finding of fact arrived at by the Tribunal is that, even though there was a business connection with the Indian company, the respondent did not carry out any business operations in India. This is finding of fact which has not been assailed in any of the ten questions which have been proposed. The Supreme Court, also in Carborandum's case [1977] 108 ITR 335 had come to the conclusion that, on the finding of fact in that case, namely, that there was no business activity carried on in India, no part of the technic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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