1996 (3) TMI 104

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Ltd., the assessee, prays for a reference and consequent direction of the following two questions : " 1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the amount of Rs. 7,69,614 paid by Cochin Refineries Limited to Foster Wheeler Energy Corporation of U. S. A. constituted 'fees for technical services' and, therefore, con....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... company. The required tests were carried out and the conclusions were reported to the assessee, Cochin Refineries Ltd. Obviously, the tests were carried out in the U. S. A, in regard to which the assessee made payment of Rs. 7,69,614. The question is whether this payment would have to be understood by way of fees for technical services. Under section 9 of the Income-tax Act, 1961, incomes have....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act, such deeming situation floats on the surface. With advantage the Tribunal has quoted the said Explanation which is as follows : " For the purposes of this clause, 'fees for technical services' means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other perso....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... regard to the two payments of Rs. 1,19,303 and Rs. 38,271 in the nature of reimbursement of payments made to the personnel, no different situation would be available because these payments would be part and parcel in the process of advice of a technical character and would fall for coverage only within the meaning of the above Explanation. For the above reasons question No. 1 will have to be a....