COMMISSIONER OF INCOME TAX Vs. ANDHRA PETROCHEMICALS LTD

JUDGEMENT

(1.) THESES appeals are filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) feeling aggrieved by the common order dated 11 -04 -2002 passed by the Visakhapatnam Bench of the Income Tax Appellate Tribunal (for short, the Tribunal) in ITA No. 721/Hyd/1996 and batch, referable to the assessment year 1988 -89. The subject matter of the appeals before the Tribunal was an order passed by the assessing officer under Section 143(3) of the Act against the respondent by treating it as an agent of M/s. Davy Mckee (London) Limited (for short, the foreign company).

(2.) BRIEFLY stated, the facts are as under:

(3.) THE respondent is a company incorporated under the Indian Companies Act, 1956 and is in the field of petro chemicals. It entered into collaboration -cum -service agreements with the foreign company. Under the respective agreements, the foreign company was to supply and instal certain machinery and to transfer the relevant know -how. The total consideration was in the range of One Million US Dollars. The respondent was making payments to the foreign company in foreign currency, by applying for no objection certificate, referable to Rule 115 of the Income Tax Rules (for short, the Rules).