COMMISSIONER OF INCOME TAX Vs. SOFREMINES INDIA LTD

JUDGEMENT

(1.) THE following three questions have been referred by the Tribunal under s. 256(1) of the IT Act, 1961 ("the Act"), as under :

(2.) THE assessment years involved are 1971-72 and 1972-73. The facts of the case as stated by the Tribunal are as under.

(3.) IN terms of the aforementioned agreements, Sofremines (Paris) directly received from TISCO a sum of Rs. 7,30,770 in the previous year relevant to the asst. yr. 1970-71. The assessee- company contended that a11 these amounts paid under the aforesaid agreements represented the income of the non-resident company, Sofremines (Paris) and were, therefore, not liable to be included in the assessee's total income. The ITO rejected this contention of the assessee and held in the assessment for the asst. yr. 1970-71 that those amounts were assessable in the hands of the assessee herein. He, accordingly, included the sum of Rs. 7,30,770 in the assessee's total income of the previous year relevant to the asst. yr. 1970-71. In the appeal by the assessee, the AAC confirmed the inclusion of the sum of Rs. 7,30,770 in the assessee's total income of the previous year relevant to the asst. yr. 1970-71. In further appeal by the assessee for the asst. yr. 1970-71, the Tribunal, for the reasons mentioned in its order, reversed the finding of the authorities below and decided the point in favour of the assessee.