1986 (1) TMI 177

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....ssioner (Appeals). He held that Wean United is not engaged in any trade or business in India and does not appear to be an income-tax assessee in India. Accordingly, the question of allowance of the remuneration paid by the assessee to Mr. George Sweet in the computation of the income of Wean United in an income-tax assessment under the Indian Income-tax Act, 1922 will not arise. In the invoice it is stated that the remuneration is payable to Mr. George Sweet. Thus, Wean United appears to have acted as a conduit pipe for passing on the remuneration collected from the assessee in lieu of the services rendered by Mr. George Sweet to the assessee. Thus, the remuneration was not paid to Wean United and was paid through it to be passed on to Mr. ....

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....reement between Wean United and the assessee but it was only through Engineering Projects (India) Ltd. Wean United is neither assessed nor assessable in India. The invoice clearly indicates that the payment was for Mr. George Sweet. Thus, he supported the order of the Commissioner (Appeals). 5. We have considered the rival submissions. The assessee placed an order with Engineering Projects (India) Ltd. who in collaboration with Wean United of USA agreed to supply the design, manufacture and supply of high speed precision tube mill for the assessee's quoted tube project. After placing that order, there was correspondence by the assessee directly with Wean United of USA. In the letter dated 23-10-1981 of Wean United of USA addressed to the....

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....g his stay in India. The above facts will clearly prove that there was business connection between the assessee and Wean United of USA. The invoice for the payment by the assessee was that of Wean United. No doubt in that invoice the name of Mr. George Sweet is mentioned as Wean United serviceman and by a letter dated 1-9-1980 by Mr. George Sweet addressed to Wean United, he had acknowledged receipt of the remuneration from it for his services rendered to the assessee. That will not prove that there was any agreement by the assessee with Mr. George Sweet and he became an employee of the assessee during his stay in India. In Bharat Heavy Plate & Vessels Ltd. v. Addl. CIT [1979] 119 ITR 986 (AP), the non-resident rendered consultancy services....