TMI Blog1984 (8) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness of manufacturing electrodes in collaboration with M/s. Greesheim GmbH of West Germany. The assessee's share capital consisted of 29,622 shares of Rs. 100 each, of which 11,907 shares were held by the foreign collaborators and 4,788 by Harshadray Private Limited. The foreign collaborators arranged through their bankers, Deutsche Bank, for guarantee in the sum of Rs. 10 lakhs to enable the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontinue the bank-to-bank guarantee for Rs. 5 lakhs till end of September, 1973. GEE would pay the amount of Rs. 5 lakhs to Bank of Baroda on the expiry of the said guarantee. HPL guarantees payment of the said amount. (f) MGG will be released of all financial obligations in relation to the affairs of GEE. " The foreign collaborators made the payment provided for in cl. (c) of the record of u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the I.T. Act, 1961 " (1) Whether, on the facts and in the circumstances of this case, the finding of the Tribunal that the benefit obtained by the assessee in the partial discharge of its liability to the Bank of Baroda by the payment of Rs. 5,00,000 by the foreign collaborators was not a benefit secured by the assessee in the course of carrying on its business or in any way connected with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account and submitted that inasmuch as the foreign collaborators had made the payment to reduce the assessee's liability under the guarantee and had given up their right to seek repayment thereof from the assessee, the amount of Rs. 5 lakhs was the value of a benefit arising from the assessee's business and was its income by virtue of s. 28(iv) of the I.T. Act, 1961. The Tribunal has found as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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