TaxTMI 
TaxTMI 
1990 (8) TMI 120
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....l Research Laboratory, Hyderabad (for short "the purchaser"). The petitioner-company was in a position to supply that plant. On March 9, 1981, the purchaser and the petitioner entered into an agreement. The agreement, inter alia, provided that the petitioner shall, in addition to four complete units, namely, mould, press part, drying and cutting units, make available to the purchaser complete data, design, drawing and instructions in connection with therewith and also assist by supervising and rendering services in connection the installation of the four units. The consideration under the agreement was Rs. 8,50,000 which included Rs. 6,56,818 being the cost of the four complete units and Rs. 1,93,182 for the supply of technical know-how, i.....
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....cient material for bifurcation, the Board further held that it would be reasonable to attribute the fees for technical know-how at 5 per cent. of the total value of the contract amounting to Rs. 8.50 lakhs, i.e, Rs. 42,500, as being covered under section 80MM. A review application was filed by the petitioner on December 4, 1986, which was rejected by the Board, vide letter dated June 23, 1987. Shri Sathe, learned counsel for the petitioner, and Dr. V. Balasubramanian, learned counsel for the Revenue, have been heard at length. The case of the petitioner has all along been that even the services covered by clause (f) of paragraph 2 of the agreement were in the nature of supply of technical know-how and that actual installation of the plant ....
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.... in India in consideration for (i) the provision of technical know-how which is likely to assist in the manufacture or processing of goods or materials, or in the installation or erection of machinery or plant for such manufacture or processing, or in the working of a mine, oil well or other source of mineral deposits, or in the search for, or discovery or testing of, mineral deposits, or the winning of access to them, or in carrying out any operation relating to agriculture, animal husbandry, dairy or poultry farming, forestry or fishing, or (ii) rendering services in connection with the provision of such technical know-how, under an agreement entered into by the assessee with such person on or after the 1st day of April, 1969, and appr....