Commissioner of Income Tax vs Otto Weyeneth

G.T. Nanavati, J.—The Tribunal has referred the following two questions to this Court under s. 256(1) of the IT Act, 1961 :

"(1) Whether, on the facts and in the circumstances of the case, retention remuneration/salary (Rs. 33,130) received by the assessee under the agreement between the assessee and foreign concern is not taxable in India under the provisions of s. 9(1)(ii) or s. 10(14) and s. 5(1)(c) of the IT Act, 1961 ?

(2) Whether, the Tribunal erred in law in confirming the order of the AAC directing the ITO to recompute the interest charged under s. 217 of the Act giving effect to the appellate order ?"

Question No. 1 is answered in the affirmative that is-against the Revenue and in favour of the assessee following the decision in Commissioner of Income Tax, Gujarat-III Vs. Nathalal Dahyabhai, .

In view of our answer to question No. 1, question No. 2 is answered in the negative, that is-in favour of the assessee and against the Revenue. The reference is disposed of accordingly with no order as to costs.