Bombay High Court High Court

Commissioner Of Income-Tax, … vs Merck Sharp And Dohme Of India Ltd. on 11 August, 1977

Bombay High Court
Commissioner Of Income-Tax, … vs Merck Sharp And Dohme Of India Ltd. on 11 August, 1977
Equivalent citations: 1983 140 ITR 334 Bom
Author: Tulzapurkar
Bench: R Kantawala, V Tulzapurkar


JUDGMENT

Tulzapurkar, J.

1. The questions referred to us really depends upon whether the arrangement between the assessee on the one hand and Manufacturing Analytical and Research Chemists Pvt. Ltd. On the other evidenced by the agreement dated May 25, 1959, amounts to a leases or a licence. The Tribunal has found that the arrangement between the parties is one of pure licence. The agreement also clearly bears out that finding. In view of this finding the question referred to us would be covered by the decision of this court in I.T. Reference No. 7 of 1967, decided on 10-11-1976 CIT v. Bayer Agrochem Ltd. ([1982] 134 ITR 240). The question referred to us is, therefore, answered in the negative and in favour of the assessee.

2. No order as to costs.