TMI Blog2007 (10) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that there was a business connection of the assessee in India on account of the functioning of its Indian branches in India? 3. Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that on a proper reading of the article 2(1) of the Agreement for Avoidance of Double Taxation between of India and Japan, the activities, of India branch of the non-resident assessee-company resulted in bringing about existence of a permanent establishment of the assessee in India and thereby making liable to tax in India income attributable to the permanent establishments in India in respect of the transaction in India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision rendered by this Court in CIT v. Smt. Asha M. Primlani [IT Reference No. 532 of 1986, dated 6-9-2007 to contend that it has already been held that the Commissioner of Income-tax could exercise powers under section 263 of the Act in respect of an order passed by the Inspecting Assistant Commissioner but only with effect from 1-10-1984. In other words, the amendment to section 263 was with prospective effect from 1-10-1984, the date mentioned in section 47 of the Taxation Laws (Amendment) Act, 1984. (a) In sub-section (1), the following explanation shall be inserted at the end, namely :- Explanation.-For she removal of doubts, it is hereby declared that, for the purposes of this sub-section, an order passed by the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Arbuda Mills Ltd. [1998] 231 ITR 501 . This has been reiterated in CIT v. Shree Manjunathesware Packing Products Camphor Works [1998] 231 ITR 532 (SC), a decision cited by learned counsel for the revenue. 8. Thus within the same provision, that is, the Explanation to section 263, two different types of languages are used. The words shall he deemed always to have extended to such matters occurring in clause (c) is absent in clause (a). It was the presence of those words in clause (c) that persuaded the Supreme Court in Shri Arbuda Mills Ltd. s case (supra) to hold that clause (c), which was introduced by the 1989 Amendment was retrospective, that is, even prior to the date of the said amendment. On the other hand, apart from the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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