K. Shivashankar Bhat, J.—The effect of section 10(6A) of the Income Tax Act, 1961, on the working of section 195 is to be considered in these writ petitions.

2. The petitioner had the benefit of the services of a non-resident company under an approved agreement; the petitioner had to pay certain sums to the non-resident company for the services rendered, on its behalf, by its engineer. The petitioner had to pay U. S. dollars 14,950 to the non-resident company; on this, the Income Tax payable has to be paid by the petitioner under section 195 of the Act. The petitioner requested the first respondent to determine the tax to be paid on remittance of the amount and to issue a non-objection certificate. The net amount payable in terms of Indian currency was stated as Rs. 1,64,738 and the gross amount as Rs. 2,74,563; on this the tax of Rs. 1,09,825 was demanded as per no objection certificate dated May 18, 1984. After paying the tax and remitting the amount, the petitioner sought refund of Rs. 45,930, pointing out that as per section 10(6A) of the Act (which was inserted with effect from April 1, 1984), the grossing up could not be done. The tax payable on Rs. 1,64,738 was only R