COMMISSIONER OF INCOME TAX Vs. TATA CERAMICS LTD

JUDGEMENT

(1.) These appeals are filed by the Revenue for sustaining assessment of the tax paid by the respondent assessee on remittance made to a foreign collaborator as income assessable at the hands of the respondent.

(2.) We have heard learned Senior counsel Shri. P.K.R. Menon appearing for the appellant and learned counsel appearing for the respondent.

(3.) The respondent assessee, a Company engaged in manufacture of ceramic products at Special Economic Zone, Kochi, entered into an agreement with a British Company for technical collaboration for manufacture of products. Clause 11 of the technical collaboration agreement produced as Annexure G is as follows:-