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Income Tax Officer and Others v. Sriram Bearings Limited and Others

Income Tax Officer and Others
Sriram Bearings Limited and Others

(Supreme Court Of India)

Civil Appeal No. 2350 Of 1986 With No. 6943 Of 1995 | 26-09-1996

1. We have heard the counsel for the appellant and respondent.

2. We are not prepared to agree that the High Court has not correctly understood the purport of the agreement between the respondent and M/s. Nippon Seike Kabushiki Kaisha (NSK). The agreement is in two parts. It is true that the two parts are interdependent but yet the consideration for the sale of trade secrets and consideration of technical assistance is separately provided for and mentioned under separate sections. So far as the consideration for the technical assistance is concerned, its taxability is not in doubt. The only controversy is with respect to the taxability of 1, 65, 000 US Dollars which is stipulated as the consideration for sale of trade secrets. The agreement specifically says that the said sale is effected in Japan. We are unable to see on what basis it can be said that any part of the said amount has been earned in India

3. The appeal is dismissed. No costs

Civil Appeal No. 6943 of 1995

4. For the reasons given in Civil Appeal No. 2350 of 1986, this appeal is also dismissed. No costs.

Advocates List


For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List



Eq Citation

(1997) 10 SCC 332

(1997) 224 ITR 724 (SC)