JUDGMENT

DUTT, J.:— This appeal by special leave is directed against the judgment of the Division Bench of the Bombay High Court* dismissing the appeal preferred by the appellants against the judgment of a single Judge of the High Court dismissing the writ petition of the petitioners whereby they challenged the order dated January 5, 1982 of the respondent No. 1, the Central Board of Direct Taxes, rejecting the, application of the appellant- company under S. 80-O of the Income-tax, Act, 1961, hereinafter referred to as the Act.

* Reported in 1987 Tax LR 1334 (Bom).

2. By two agreements, one dated April 5, 1980 and the other dated August 14, 1980, entered into between the appellant-Company and Toyo Engineering India Ltd (for short Toyo lndia) the appellant-Company agreed to render technical services in respect of Iraqi Storage Terminal Project Installations in consideration of payment to it by way of fees payable under the said agreements. In the said agreement dated April 5, 1980, it is stated inter alia that Toyo India has been engaged by Toyo Engineering Corporation (for short TEC), a company organised and existing under the laws of Japan having its registered office at Tokyo, Japa