DIPAK KUMAR SEN, J. - (1.) THE facts found or admitted in the above reference and the proceedings leading up to the same are, inter alia, as follows : Atlas Steel Co. Ltd., the assessee, is a non-resident company incorporated under the laws of, and located in, Canada.
(2.) AN agreement in writing dated September 12, 1961, was entered into by and between Hindusthan Steel Ltd., Ranchi, a Government of India undertaking and one Atlas Steel Company Limited, another non-resident company. By a subsequent agreement also in writing dated November 14, 1962, entered into amongst the said Atlas Steel Co. Ltd., the assessee, Hindusthan Steel Ltd. and one Rio Algon Lines Ltd., another nonresident company, the rights and liabilities of Atlas Steel Co. Ltd., under the earlier agreement dated September 12, 1961, were assigned to Atlas Steel Co. Ltd., the assessee.
(3.) THE said agreement dated September 12, 1961, was a technical collaboration agreement. Hindusthan Steel Ltd. intended to establish a plant in India for manufacture of special types of steel, viz., tool alloy stainless steel and heat resisting steel. Atlas Steel Co. Ltd. was carrying on the business of manufacture of such steel and in connection with such business owned and used inventions, patents, applications for patents and had both secret knowledge and know-how relating to the manufacture of such steel contained, inter alia, in formulae, standards, processes, technical and other data owned by it.;