1999 (2) TMI 35

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..... ction 256(2) of the Income-tax Act, 1961, praying for calling for the statement of the case from the Income-tax Appellate Tribunal on the following two questions : "(i) Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that no service has been rendered by the assessee who is a non-resident to a resident in terms of section 9 of the Income-tax Act ?" (ii .....

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..... s income by the Assessing Officer. It took appeal before the Commissioner of Income-tax (Appeals) but failed. It then carried the matter to the Tribunal and succeeded. The Tribunal interpreting the provisions of section 9 of the Income-tax Act, 1961, along with its Explanation 2 took the view that rendering of service was a prerequisite for tax liability and since no such services were rendered by .....

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..... or arise in India, if it was an income by way of fees for technical services payable by a person who is a resident. The relevant provision is extracted hereinbelow : "9. (1) The following incomes shall be deemed to accrue or arise in India--... (viii) income by way of fees for technical services payable by-.... (b) a person who is a resident, except where the fees are payable in respect of .....

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