1999 (10) TMI 39

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0 and 1980-81. The composite question referred to us as to whether, on the facts and in the circumstances of the case, the technical know-how and the royalty payable under the collaboration agreement dated April 9, 1974, between the assessee and Lakshmi Automatic Loom Works has accrued or deemed to have been accrued in India within the meaning of section 9 so as to be exigible to income-tax. The assessee is a company incorporated in Switzerland. It manufactures weaving machines and is said to be 130 years old. It entered into a collaboration agreement with Lakshmi Automatic Loom Works Limited. The collaboration was in respect of all types of machinery described in the agreement. The agreement contemplated manufacture of the machinery ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed in Switzerland could not be subject to tax here. He also held that only 60 per cent. of amount received by the assessee as royalty is taxable. The Tribunal has affirmed the view of the Commissioner so far as the payment of or the documentation is concerned. On the question of exigibility of the tax on the royalty payment, it held that the assessee is liable to pay tax on the whole of the amount of royalty received and not merely on 60 per cent. thereof. The Tribunal has found that the documentation for which the payment was made were handed over to the assessee in Switzerland and that the payment therefor in cash was also made in Switzerland. Having regard to the finding of fact, the Tribunal has correctly proceeded to hold that th....