DIPAK KUMAR SEN, J. - (1.) THIS is a consolidated reference initiated by the assessee and also the Revenue by applications under s. 256 (1) of the IT Act, 1961. The following questions have been referred at the instance of the assessee : " (1) Whether, on the facts and in the circumstances of the case the Tribunal was right in holding that the assessee had business connection in India ? (2) If the answer to question no. 1 is in the affirmative whether, on the facts and in the circumstances of the case and on a correct interpretation of the agreement dt. 23rd Dec., 1960 the Tribunal was justified in holding that part of the income from payments made by the India company Bertrams Scoott (India) Ltd. to the assessee company as is reasonably attributable to the operations carried out in India is assessable to tax under the IT Act, 1961?"
(2.) THE following question has been raised at the instance of the Revenue : "Whether, on the facts and in the circumstances of the case and having held that the assessee had business connection in India, the Tribunal was, justified in holding that the entire income was not liable to assessment only that part thereof was liable to assessment as is reasonably attributable to the operations carried out in India ?" No one appeared on behalf of the assessee at the hearing of this reference. Therefore, we decline to answer the questions which have been referred at the instance of the assessee.
(3.) SO far as the question referred at the instance of the Revenue is concerned the same arises form the following observation in the decision of the Tribunal : "We searched in vain in the records for finding out some basis for determining what of the total income of the assessee on account of its business connection in India can reasonably be attributed to services rendered by it in India. Neither the Department nor the assessee, even when asked, could give us any relevant particulars......... Necessarily therefore, an estimate has to be made as regards what of the amount brought to tax by the ITO is attributable to the services rendered by the assessee in India. Taking everything into consideration and looking particularly into the large number of items of services in the schedule of the agreement which relate to services to be rendered outside India as compared to the comparatively fewer services that are to be rendered in India. We feel that 10 per cent of what had been estimated by the ITO as net profits of those years would be a proper estimate of the assessee's income that had accrued or arisen in India to be accordingly brought to tax. The AAC's order in all these cases will stand reversed to that extent". ;