2002 (11) TMI 50

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.... experts were not taxable within the meaning of section 9(1)(vi) of the income-tax Act, 1961?" The assessee is a company in West Germany, as then known. The assessee entered into a collaboration agreement with the Indian company, BHEL, Trichy, dated November 26, 1973, and we are concerned with three kinds of payments received by the assessee, namely, royalty, fees for sending technicians to India and special engineering fees for a particular item of work done. The assessee claimed exemption that the receipts were not liable to tax, but the Assessing Officer did not accept the claim and completed the assessment. The assessee challenged the orders of assessment before the Commissioner of Income-tax (Appeals) and the Commissioner of Income-....

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....axation Avoidance Agreement. It was also held that the amounts were exempt as they were received under the pre-1976 agreement and they were not exigible to tax under section 9(1)(vi) of the Income-tax Act. The Assessing Officer, on the basis of the directions of the Appellate Tribunal rendered earlier, completed the assessment bringing to tax all the items. The Commissioner of Income-tax (Appeals) upheld the order of the Assessing Officer and against the order of the Commissioner of Income-tax (Appeals), the assessee preferred appeal before the Appellate Tribunal. The Appellate Tribunal held that its earlier order rendered in I.T.A. Nos. 4125 to 4127 (Mds) of 1987, dated October 16, 1991, has become final and in view of the same, the rec....

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....see and held that some of the receipts are exempt under the Double Taxation Avoidance Agreement, the Revenue has not challenged that part of the order of the Appellate Tribunal. Though we are of the view that the reference referred to us has become academic in the absence of any challenge to the said finding of the Appellate Tribunal, we have gone into the merits of the matter. As far as the receipts for visit of technicians are concerned, the same question regarding taxability of the receipts was considered by the Appellate Tribunal in the assessee's own case for the same assessment years 1980-81 to 1982-83 and the Appellate Tribunal, by order dated October 16, 1991, held that the receipts were not taxable. Though the assessment years w....