INDO NISSIN FOODS LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) HEARD Sri K.S. Ravishankar, learned Counsel for the appellant, and Sri M.V. Seshachala, learned Counsel for the respondent.

(2.) THIS appeal under Section 260A of the Income Tax Act, 1961 (hereinafter 2 shall be referred to in short as "the Act"), has been preferred by the asses -see against the order dated December 20, 2002, passed by the Income Tax Appellate Tribunal, Bangalore Bench "A", in the assessee's I.T.A. No. 402 (Bang)/2002 for the assessment year 1999 -2000. In the memo of appeal even though several substantial questions of law have been formulated, but after having heard learned Counsel for the parties, learned Counsel for the appellant agreed that in fact questions Nos. 33 and 34 may be formulated for decision by this Court in this appeal. Questions Nos. 33 and 34 are reproduced hereunder:

(3.) IN terms of the collaboration agreement, royalty was payable to NTPL, by the assesses -company as per Clause 4(1) in respect of use of know -how and technical assistance, equal to an amount of 3 per cent, of the net sale price. The royalty payment by the assessee to NTPL was to be made on or before the last day of the month immediately following the royalty period. The royalty was to be paid from the end of March 31, 1993, and each succeeding six months period thereafter during the term ending on March 31 or September 30, as the case may be. The said royalty payable by the assessee to the collaborator was subject to the provisions of tax deduction at source, as per the various provisions of the Income Tax Act, 1961.