1996 (9) TMI 7 - SCH - Income Tax

Agreement is in two parts - two parts are interdependent but yet the consideration for the sale of trade secrets & consideration of technical assistance is separately provided for and mentioned under separate sections - taxability of 1,65,000 U. S. dollars which is stipulated as the consideration for sale of trade secrets - agreement specifically says that the said sale is effected in Japan - it can not be said that any part of the said amount has been earned in India.

Summary

The Supreme Court dismissed the appeal regarding the taxability of 1,65,000 U.S. dollars for the sale of trade secrets, stating that the amount was earned in Japan and not in India. Civil Appeal No. 6943 of 1995 was also dismissed for similar reasons. No costs were awarded.