COMMISSIONER OF INCOME TAX Vs. SIEMENS AKTIONGESELLSCHAFT

JUDGEMENT

(1.) This reference has been made by the Tribunal to this Court in respect of, the asst. yr. 1979-80. The respondent had entered into agreements with Bharat Heavy Electricals Ltd. (BHEL), Bharat Electronics Ltd. (BEL) and Siemens India Ltd. (Siemens).

(2.) The first agreement between the assessee respondent and BHEL was entered into on 21st July, 1974, the second was dt. 28th July, 1975, and the third agreement was entered into earlier on 28th Oct., 1975.

(3.) The issue which arises for consideration in the present reference is whether the amounts received under those agreements by the respondent from the three companies were chargeable to tax in India either having regard to the provisions of the IT Act, 1961 (hereinafter referred to as the Act) or having regard to the provisions of the Double Taxation Avoidance Agreement (DTAA) entered into between the Government of India and the Federal Republic of Germany (hereinafter referred to as the German DTAA).