Engineering fee in nature of royalty u/s 9(1).

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....ain diesel engines by the Indian company. In consideration of the services to be rendered, the non-resident company was to receive engineering fees from the Indian company. For the assessment years 1960-61 to 1965-66, the ITO had held that 75% of the engineering fees received by the foreign company related to services rendered in India and hence taxable. The AAC in appeal held that only 25% of the....

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....not arise on the frame of the question referred to the High court. It was therefore not open to the department to contend at that stage that the entire engineering fees was assessable to tax in India. It has been decided in consultation with the Ministry of Law that the High court rightly decline to consider the question that the entire payment was really, in the nature of royalty income, as this ....