TMI Blog1989 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... es accrued or arose in India or was deemed to accrue or arise in India and was subject to tax ?" The assessment year involved is 1976-77 for which the previous year ended on December 31, 1975. The facts of this case are as follows : The assessee, a non-resident company, entered into an agreement with the West Bengal Industrial Development Corporation Ltd. for setting up a factory in West Bengal for production of automotive tyres and tubes. As per the terms of this agreement, the foreign company was to supply note and technical data for the construction of the factory in India as also to supply various items of plant and send technical personnel for supervision of the construction of the factory and commissioning of the plant. In return, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal upheld the order of the Commissioner of Income-tax (Appeals) and held as follows: " In the present case, as will be noted from the facts stated above, admittedly, no services whatsoever had been rendered by the assessee-company to the two Indian companies in India during the previous year under consideration. Therefore, even if the agreement constituted the bond between the assessee-company and the Indian companies which could be legitimately constituted as a business connection no part of the income flowing to the assessee-company through this business connection would be taxable in the hands of the assessee-company..." The findings of the Tribunal have not been challenged by raising question as to the perversity of such a finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, it is clear that there must be some sort of activity from which it would be evident that the income has been received or accrued or deemed to have been received in India and unless it could be shown that the income is received or deemed to have been received or accrued in India, such income could not be taxed. The Tribunal found that no service whatsoever has been rendered by the assessee-company to the Indian companies during the previous year. In that event, the said sum received in India could not be taxed. In view of that finding of fact made by the Tribunal which has not been challenged as perverse, this court has to accept that finding and proceed accordingly. In view of such a finding, it must be held that the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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