V.S.DESHPANDE, C.J. - (1.) In Chapter Vl-A of the Income-fax Act, 1961 entitled "Deductions to be made in Computing Total la- come", section 80-MM deals with deductions from income claimed by an Indian company in respect of royalties, etc., received by it from any person in India. Where an assessee receives a royalty commission fees or any other payment from a person carrying on business 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 the machinery or plant for such manufacture or processing." or in consideration for (ii) "rendering services in connection with the provision of such technical know-how." under an agreement approved by the Central Government the assessee shall be allowed a deduction from such income of an amount equal to forty per cent thereof in computing his total income
(2.) The expression ''provision of technical know-how", inter alia means the imparting of any information concerning the working of or the use of a design or information concerning commercial or scientific knowledge, experience or skill.
(3.) The question before us is whether the agreement at annexure I of the writ petition between the petitioner company and the Hindustan Steel Limited qualifies for such approval by the Government and whether the refusal by the Government by the impugned order of 27th August, 1975 at annexure VIII should be quashed;