1978 (3) TMI 35

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....ered by SRINIVASA IYENGAR J.--The Income-tax Appellate Tribunal, Bangalore, has referred the following two questions for decision by this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee-company cannot be treated as agents of the foreign company, M/s. Fritz Werner, West Germany ? (ii) Whether, on the facts and....

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....rds the issue of an equity capital and consequent on the devaluation of the rupee on June 6, 1966, the assessee was required to pay an additional sum of Rs.7,25,483. The Central Government gave its approval for the payment of such interest. To the notice issued by the ITO as to why the assessee should not be treated as an agent of the foreign company, objections were filed, inter alia, contending ....

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....nd the non-resident and that the non-resident was not in receipt of any income from or through the assessee, as defined in s. 163(1)(b) and (c) as also s. 9(1)(i) as it stood then in the relevant years. It is on these facts that the above questions are referred for the decision by this court. The finding of the Tribunal is that this purchase was a solitary transaction and that there was no other m....

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.... in India, or through or from any money lent at interest and brought into India in cash or in kind or through the transfer of a capital asset situate in India...... " A business connection involves the concept of a control, supervision or a continuous activity in nature. There is absolutely no evidence that there was any such activity. The only connection was the solitary transaction of purchas....