SANKAR PRASAD MITRA, J.

( 1 ) THE assessment year is 1959-60 for which the previous year ended on the 31st July, 1958. The assessee is a public limited company. It carries on the business of manufacture and sale of certain electrical goods. On the 21st May, 1956, the assessee entered into an agreement with Messrs. Simplex Electric Company Ltd. of England (hereinafter sometimes called the " foreign company "}. By this agreement the assessee acquired certain rights to manufacture and sell in India products of " Simplex " design and to use the trade name " Simplex " on the terms and conditions therein mentioned. Some of the clauses of this agreement which the Tribunal has quoted in the statement of the case are as follows :"clause 3 (a ).--HGEC shall be liable to pay ' Simplex ' the cost (including freight, transport and insurance costs) of preparing and providing prints, designs, drawings, specifications, instructions and other information as aforesaid and of supplying patterns and tools upon invoices in respect thereof being submitted by ' simplex ' to HGEC. HGEC shall also pay to ' Simplex ' a fee at the rate of 500 per annum (payable annually in advance, the first payment to be m

Click Here to Read the rest of this document