3,82,481 and for the assessment year 1975 76, a sum of Rs.
For a proper appreciation of the question arising herein, it is necessary to numberice certain factual statements companytained in the Statement of the Case.
3,23,400 and Rs.
The assessee companytended before the Income Tax Officer that he was number liable to pay tax He also filed returns affirming the said stand.
There was a second agreement between Ballarpur and Krebs whereunder Krebs undertook to provide services of certain personnel including engineers for setting up the plant at Ballarpur.
67,200 in addition to daily allowances and other facilities.
It is stated therein according to this agreement, Ballarpur were under an obligation to pay by the device of delegation invoices opened with a bank in France certain amount of salaries at agreed rates to Krebs and Cis.
From the Judgment and Order dated 15.6.1978 of the Bombay High Court in I.T. Ref.
35,546 for the said two assessment years respectively.
For the assessment year 1974 75, the assessee appellant was paid a sum of Rs.
U. Eradi and Suman J. Khaitan for Khaitan Co. for the Appellant.
The said addition was questioned by the assessee in appeal, before the A.A.C. but without success.
The stand taken by him was negatived, whereupon Ballarpur paid the tax of Rs.
The matter was then carried to the Tribunal.
In his assessment orders, the I.T.O. treated the said tax amount as a perquisite and added the same to the salary amount received by the assessee.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
3115 16 of 1980.
3,82,481 and Rs.
The Judgment of the Court was delivered by P. JEEVAN REDDY, J. Assessee is the appellant.
The Ballarpur Paper and Straw Board Mills Limited Ballarpur is a public limited companypany engaged in the manufacture of paper and straw board.
Rajappa for Ms. A. Subhashini for the Respondent.
The Tribunal too did number agree with the assessees companytention and dismissed his appeal whereupon he obtained the aforesaid reference which, as stated above, has been answered against him by the Bombay High Court.
Paris for setting up the plant at the town of Ballapur The Tribunal clarified that there was numberdispute between the parties that the amounts of Rs.
For this purpose, it entered into an agreement with Krebs, a French companycern, for purchase of certain machinery and equipment.
It undertook to set up a caustic soda chlorine manufacturing plant at Ballarpur.
He is aggrieved by the decision of the Bombay High Court in Income Tax Reference No.
Krebs, in turn, entered into an arrangement with a Swiss companycern, Escher Wyas Eurich, for supply of certain machinery and also to make available services of certain personnel.
458 of 1976.
Inter alia, it was provided that salaries are understood free of any Indian tax or duty.
67,200 paid by Ballarpur through Krebs to the assessee for services rendered by it in the two respective years were taxable under the heading Salary.
458 of 1976 answering the following question, which was referred to it at his instance, against him whether on the facts and in the circumstances of the case the amount of tax paid by Ballarpur on behalf of the assessee in assessment years 1974 75 and 1975 76 is income tax ore under the heading other sources.
