N.Kannadasan, J.

The above appeal is filed by the Revenue raising following substantial question of law:-

"Whether on the facts and in the circumstances of the case and in terms of the Double Taxation Avoidance Agreement with Germany, the Income Tax Appellate Tribunal was right in holding that the payment made to the assessee foreign company was taxable at the rate of 20% as technical know-how fees and not at 30% as royalty?

2. The assessment proceedings of the foreign company represented by their agents Lakshmi Synthetic Machinery Manufacturers Limited, Coimbatore for the assessment year 1992-93 was completed under Section 143(3) of the Income Tax Act (hereinafter called as 'Act') on 11.1.1995. In the course of the assessment proceedings, a question arose as to whether the assessee should be taxed at 30% as applicable to the royalty or 20% applicable to technical know-how fees. The assessee/respondent herein contended that in the agreement entered into between the foreign company and their agents, separate clauses are existing viz., technical know-how fees and royalty. The Assessing Officer, by assessment order dated 11.1.1995, held that the disputed amount falls within t