Overseas services utilisation outside India defeated the tax disallowance, with no referable question of law arising.

Section 104 of the Income-tax Act was considered in light of a notification relating to services rendered outside India. The Tribunal found that the design, technical know-how, and services were received and utilised in Cuba, and that the payment was attributable to that overseas utilisation; on that factual basis, the notification conditions were treated as satisfied and the disallowance and additional demands were regarded as unsustainable. The High Court characterised the controversy as one of factual appreciation rather than a debatable legal issue, and therefore held that no referable question of law arose from the Tribunal's order. The reference was declined and the Tribunal's view in favour of the assessee remained undisturbed.

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Issues: Whether section 104 of the Income-tax Act, 1961 applied to the assessee in view of the notification concerning services rendered outside India, and whether any question of law arose from the Tribunal's order.

Analysis: The Tribunal's finding was that the design, technical know-how, and services were received and utilised in Cuba, outside India, and that the payment was attributable to such utilisation. On that basis, the conditions of the relevant notification were treated as satisfied, and the disallowance and additional demands were held unsustainable. The High Court treated these conclusions as essentially factual. Since the controversy turned on factual appreciation rather than a debatable legal issue, no referable question of law arose from the Tribunal's order.

Conclusion: The reference was declined and the Tribunal's view in favour of the assessee remained undisturbed.

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