LAWS(KAR)-2004-3-50

AEG AKTIENGESLLSCHAFT Vs. COMMISSIONER OF INCOME TAX

Decided On March 17, 2004
AEG AKTIENGESLLSCHAFT Appellant
V/S
COMMISSIONER OF INCOME-TAX Respondents

JUDGEMENT

(1.) ON the application made by the applicant --M/s. AEG Aktiengesllschaft (hereinafter referred to as "the assessee"), under Section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, by means of its order dated September 15, 1994, has referred the questions of law mentioned hereinbelow as arising out of the order dated august 24, 1993, made in I. T. A. No. 791/ Bang of 1987 by it. The questions are :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in holding that the engineering fees received/receivable by the assessee could also be considered as falling within the definition of 'fees for technical services' even in terms of the provisions of Section 9 (1) (vii) of the Income-tax Act, 1961, and that the restrictive clause in Explanation 2 to the said clause (vii) of Section 9 (1) of the Income-tax Act would not apply to the present case ?

(3.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in holding that the present case would be covered by Article VIIIA of the amended Double Taxation avoidance Agreement between the Republic of India and the Federal Republic of Germany and not by Article III of the said agreement ?