Decision of the Madras High Court in the case of Carborandum Co.

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....1-2-1976 (Instruction No. **920) issued in the context of the decision of the Madras High Court in the case of Carborandum Co. (92 ITR 411). 2. On appeal filed by the assessee company, the Supreme Court in its judgment dated 11-4-1977 (108 ITR 335) has reversed the decision of the Madras High Court and has held that :- "The High Court was wrong in its view that the activities of the foreign pers....

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.... of the Indian company, yet no part of the activity or operation could be said to have been carried on by the American company in India and in the absence of such sustainable finding by the High Court, the provisions of section 42 either of sub-section (1) of sub-section (3) were not attracted at all. 3. The Hon'ble Court has further held that in order to rope in the income of a non-resident unde....