1973 (6) TMI 4

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....ithout accepting the said position that for the purpose of this rule nisi there is a business connection between a German concern by name M/s. Lichema G.m b.H. and the assessee-company and further it should be assumed that the assessee should be treated as the agent of the German concern. In that view of the matter the only question that survives for consideration is question No. 1 in respect of which the rule nisi is issued. Under this question the revenue wants to assess the assessee on the income which arose to Messrs. Lichema. Now, such income can only be assessed in the return of the assessee having regard to the provisions of section 9(1)(i) of the Act. This section contains a deeming provision as regards the income deemed to accru....

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....operations carried out in India. What are the operations carried out in India in respect of which there is an income sought to be assessed, is always a question of fact and the Tribunal has considered the various provisions of the agreement dated October 1, 1953, entered into between the German concern and the assessee. Under this agreement, there are various provisions under which remuneration has to be paid to the German concern for the things to be done thereunder. Clause 9 of this agreement deals with services to be rendered by sending experts to India in order to assist the assessee to commence production. It is not the case of the revenue that the income sought to be assessed is covered by this clause. It is clearly conceded by Mr. Jo....