COMMISSIONER OF INCOME TAX Vs. RALLIWOLF LIMITED

JUDGEMENT

(1.) AT the instance of the Revenue under S. 66(2) of the Indian IT Act, 1922, this Court directed the Tribunal to refer the following question for determination by the High Court:

(2.) IT is this question that we propose to deal with.

(3.) A separate agreement was entered into between the assessee company and the U. K. company, whereunder the U.K. company was to provide to the assessee company the requisite process and formulae relating to the manufacture of tools and also the requisite drawings, designs and technical know how, etc., for the starting of the factory in India. The U.K. company agreed to subscribe for 3,525 shares of Rs. 100 each in the assessee company, the amount whereof was to be adjusted against the cost of machinery to be supplied by it. Following are some of the important dates which are relevant for the purpose of this reference :