Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 1973 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1973 (5) TMI 5 - HC - Income TaxAssessee, a foreign company entered into an agreement with an Indian company – Whether the technical service fee in excess of 5 per cent. received by the assessee-company from the Indian company during the account year relevant to the assessment year 1957-58 has accrued or arisen in India - the entire receipts by the assessee-company has to be taken to have accrued or arisen in India as a result of its business connection and, therefore, taxable. The apportionment made by the Commissioner or the one made by the Income-tax Officer cannot, therefore, be sustained for the assessee cannot be said to have carried on business in India in the context of the definition of " business " and, therefore, there is no question of any apportionment. But, having regard to the fact that the Commissioner has directed the assessment of only 75 per cent. of the technical fee received by the assessee as income accrued in India and it is only that order which was appealed before the Tribunal, the assessment can be made only in relation to the said 75 per cent - question is answered in the affirmative and against the assessee.
|