LAWS(CAL)-1981-6-36

OIL INDIA LIMITED Vs. COMMISSIONER OF INCOME TAX

Decided On June 03, 1981
OIL INDIA LIMITED Appellant
V/S
COMMISSIONER OF INCOME-TAX Respondents

JUDGEMENT

(1.) This reference arises out of an application filed by the assessee, Oil India Ltd., Duliajan, under Section 256(1) of the I.T. Act, 1961.

(2.) There is an agreement dated December 27, 1963, between the assessee-company and the Burmah Oil Co. Ltd. under which charges in accordance with the basis set out in the schedule annexed to the said agreement are payable half yearly by the assessee-company to the Burmah Oil Co. Ltd. for the services rendered by the latter to the assessee-company. Clause 7 of the said agreement reads as follows :

(3.) Originally, a return was filed on September 28, 1970, showing a total income of Rs. 9,08,35,318. Subsequently, a revised return was filed on January 3, 1973, showing a total income of Rs. 9,48,17,590. During the assessment, the ITO passed the order as follows: