CHLORIDE GROUP PLC Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) On an application under Section 256(2) of the Income-tax Act, 1961, this court has directed the Tribunal to refer the following questions set out at pages 15 and 16 of the paper book :

(2.) Whether, on a proper interpretation of the Contract Act and the agreements entered into by Chloride Group Plc. with Chloride India Ltd. from time to time, the Tribunal was correct in law in holding that the agreement dated December 10,1981, was not a separate and new agreement and even assuming that it was a separate agreement, the effective date of signing of the contract was to be treated as January 1,1980, in the light of the decision in the case of C/T v. Continental Commercial Co. Ltd,?

(3.) Whether the Tribunal was correct in law in interpreting the provisions of Article 13(2) of the Double Taxation Avoidance Agreement between India and U. K. and, therefore, legally justified in holding that even though the contract dated December 10,1981, was signed after the date of entry into force of the convention for avoidance of double taxation between India and U. K., the assessee would be deprived of the concessional rate of 30 per cent, provided in the said article only because the right under the agreement dated December 10, 1981, accrued to the assessee with effect from January 1, 1980 ?" In compliance with the direction of this court, the Tribunal has referred the aforesaid questions for opinion of this court.