https://www.taxtmi.com/caselaws?id=11782 Payments made by a resident purchaser to a non-resident supplier for experts' services in erection, start-up and commissioning of imported machinery were examined for deemed accrual under ss. 5(2), 9(1)(i) and 9(1)(vii) of the Income-tax Act. On a cumulative reading of the main supply contract and the supplementary agreement, the HC held they formed a single, indivisible principal-to-principal transaction, and the technical services were inextricably linked to fulfilment of the sale, constituting part of the sale consideration rather than severable business income or a separate fee for technical services. Consequently, no "business connection" arose under s. 9(1)(i) and s. 9(1)(vii) was inapplicable; in any event, the payments fell within the exclusion in Expln. 2 to s. 9(1)(vii), and were not taxable. en-us Tue, 04 Feb 2003 00:00:00 +0530 Fri, 26 Dec 2025 16:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11782 Payments made by a resident purchaser to a non-resident supplier for experts' services in erection, start-up and commissioning of imported machinery were examined for deemed accrual under ss. 5(2), 9(1)(i) and 9(1)(vii) of the Income-tax Act. On a cumulative reading of the main supply contract and the supplementary agreement, the HC held they formed a single, indivisible principal-to-principal transaction, and the technical services were inextricably linked to fulfilment of the sale, constituting part of the sale consideration rather than severable business income or a separate fee for technical services. Consequently, no "business connection" arose under s. 9(1)(i) and s. 9(1)(vii) was inapplicable; in any event, the payments fell within the exclusion in Expln. 2 to s. 9(1)(vii), and were not taxable. Case-Laws Income Tax Tue, 04 Feb 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11782