DIRECTOR OF INCOME TAX Vs. XELO PTY. LTD

JUDGEMENT

(1.) In the present Appeal, the Revenue has raised the following questions of law:

(2.) The assessee is a resident of Australia. The Assessment Year involved herein is A.Y. 1995-96.

(3.) The first question relates to the taxability of the amounts received by the assessee on account of offshore supplies. The assessee had entered into a contract with the Metro Railways for supply of equipments and services offshore as well as onshore. Since there was one single contract for supply of equipments and services offshore/onshore, the Assessing Officer was of the opinion that the amounts received by the assessee from Metro Rail in respect of offshore supplies were taxable in India.