National Industrial Development Corporation Ltd. vs Commissioner of Income Tax

B.N. Kirpal, J.—In respect of the assessment year 1978-79, the assessed is seeking reference of two questions of law which, admittedly, are similar to the questions for which reference has already been made by the Tribunal u/s 256(1) of the Income-Act, 1961. In view thereof we direct the Tribunal to state the case and refer the following two questions of law to this court :

"1. Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the petitioner-company had business connection with Nittestu Mining Consultants Company Ltd., of Japan and, Therefore, was liable to be treated as their agents u/s 163 of the Income Tax Act, 1961 ?

Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the assessment proceedings could be validly started by treating the petitioner-company as an agent of the non-resident party even after it had deducted Income Tax at source according to the orders made by the Income Tax Officer u/s 195(2) of the Income Tax Act, 1961, and deposited the same to the credit of the Central Government ?"

There will be no order as to costs.