9911796707
TMI Blog1984 (7) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... It relied upon the decision of the Tribunal in ITA No. 17905 of 1966-67. Similar claims advanced by the assessee-company in the earlier years have been rejected by the Tribunal. The Tribunal considered the decision of the Tribunal relied upon by the assessee in the earlier years. I may add that the facts of the present case are materially different from the facts in the case relied upon it. It may be pointed out that the charges of Rs. 15,000 have been paid by the assessee-company for all the services agreed to be rendered by the foreign company under the agreement. It is not that Rs. 15,000 have been paid only for the secret and specialised designs, drawings and results of researches, studies, tests and drawings, plant, tracings, prints, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss it can be said that the know-how was conveyed merely by conveying the documents. In the circumstances, I reject the assessee's claim. 3. The next point, which is also common for both the years, relates to the assessee's claim for a lower rate of tax on the ground that it was an industrial company as defined by s. 2(6)(c) of the Finance Acts of the relevant years. Similar claim advanced by the assessee company in the preceding years was rejected by the Tribunal and the Revenue has relied upon the decision of the Tribunal in ITA No. 1388 (Bom) of 1971-72 relating to the asst. yr. 1970-71. Mr. M. C. Mathur, ld. counsel for the assessee-company, submitted that all the relevant facts were not properly placed before the Tribunal and the que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Indian IT Act, 1922. The processes involved in the present case are of greater complexity involving use of sophisticated equipment and one cannot have any doubt applying the ration of this decision that the assessee-company is engaged in the manufacturer and processing of goods. The assessee-company derives income from three different activities, namely, the activity of preparing plans and designs referred to above, the activity of consultations and the activity of supervising the work at the sites. Mr. Mathur stated that the assessee-company derived bulk of its income far exceeding 50 per cent of its income, from the first activity only. The Revenue did not challenge this statement. I accordingly hold that the assessee company was an in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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