1986 (7) TMI 146

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....eferred to as FCI for short, for rendering assistance in engineering, in procurement in supervision of the erection, installation and start up and commissioning of plant. It is not necessary to give the details of this contract. The only point to be noted is that FCI should pay the assessee certain fees for the services to be rendered. Similar contracts had been entered into by the assessee with Atul Products Ltd. On 28th Jan., 1977, Ashok Paper Mills Ltd. on 12th Sept., 1973 and Travancore Cochin Chemicals Ltd. on 27th Jan., 1972. 3. For the asst. yr. 1981-82, the payments made by the Indian companies on the basis of the contracts are by FCI on the contract dt. 28th May, 1974 and Kothari (Madras) P. Ltd. 4. According to the assessee, the....

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.... to the payments from Ashok Paper Mills Ltd. and Travancore Cochin Chemicals Ltd., for the asst. yr. 1980-81 and the payments received in the asst. yr. 1981-82, the assessee has come on appeal. The Department has objected to the findings of the Commissioner(A) that the payments received from FCI and Atul Products Ltd. for the asst. yr. 1980-81 were exempt from taxation. 8. We have heard Shri Palkhivala for the assessee and Shri Thomas for the Department. Shri Palkhivala submitted that the only issue to be considered is whether all these payments would be covered under the provisions of the Double Taxation Avoidance Agreement with West Germany. He submitted that it is an admitted position that the assessee had no permanent establishment in ....