ATLAS COPCO AB OF SWEDEN, BOMBAY Vs. CIT

JUDGEMENT

(1.) At the instance of the applicant-assessee, the Tribunal has referred the following questions of law under s. 256(1) of the IT Act, 1961, for the opinion of this Court:

(2.) It was contended by the assessee that the amount received during the year pursuant to the aforesaid agreement was not taxable in India as per the provisions of the DTAA. The AO rejected the contention of the assessee and held that the amount received by the assessee was royalty covered under Art. 7 of the DTAA and therefore, taxable in India. The said order was confirmed by the CIT(A) as also the Tribunal. On a reference application filed by the assessee, the Tribunal has referred the aforesaid questions for the opinion of this Court.

(3.) On perusal of the order of Tribunal, particularly para 8 thereof, it is seen that the Tribunal has considered the various clauses in the agreement dt. 25th March, 1985 and recorded a finding as follows :