COMMISSIONER OF INCOME TAX Vs. USHA MARTIN BLACK WIRE ROPES LTD
LAWS(CAL)-1983-3-5
HIGH COURT OF CALCUTTA
Decided on March 14,1983

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
USHA MARTIN BLACK (WIRE ROPES) LTD. Respondents

JUDGEMENT

Suhas Chandra Sen, J. - (1.) The Tribunal has referred the following two questions of law under Section 256(1) of the I.T. Act, 1961 : "1. Whether, on the facts and in the circumstances of the case, and on a proper construction of the terms of the agreement dated July 2, 1973, the Tribunal misdirected itself in law in holding that there was no 'business connection' of M/s. Martin Black & Company (Wire Ropes) Ltd. (U.K.) in India or whether the said finding of the Tribunal was perverse ? 2. If the answer to question No. (1) is in the affirmative, then whether the Tribunal was right in holding that the amount of royalty paid by the assessee-company to M/s. Martin Black & Company (Wire Ropes) Ltd. (U.K.) was not assessable to tax in India under s. 9(1)(i) of the Income-tax Act, 1961 ?"
(2.) The relevant facts have been set out in the statement of case which are as follows :
(3.) The assessee-company submitted an application under Section 195 dated May 24, 1974, to the ITO, ' B ' Ward, Companies Dist. VI, Calcutta, requesting issue of a certificate under the aforesaid section certifying that the royalty payable to M/s. Martin Black & Company (Wire Ropes) Ltd. in terms of the agreement dated July 2, 1973 (between M/s. Usha Martin Black (Wire Ropes) Ltd. (hereinafter to be referred to as "the company") and M/s. Martin Black Company (Wire Ropes) Ltd. (U.K.) (hereinafter to be called "Martin Black") was not taxable. According to the assessee's counsel, the ITO was not agreeable to the proposal put forward by the company which again submitted an application dated October 7, 1974, for issuance of a certificate on the basis of the ITO's decision that a portion of the royalty payable to Martin Black was taxable under the Indian I.T. laws.;


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