ISMAIL J.

All these references relate to the same assessee and deal with the same question but concern different assessment years T.C.No. 59/72 covers assessment years 1962-63 to 1967-68, T.C. No. 33/74 covers assessment year 1968-69 and T.C. No. 234/74 covers assessment year 1969-70.

The assessee entered into an agreement on October 12, 1959, with M/s. Societa Italiana Pompe Aturia of Italy (hereinafter referred to as "Aturia") for manufacture of submersible pumps, centrifugal pumps, etc. The relevant clauses of the agreement were as follows :

Clause (i) stated that Aturia shall grant a licence to the assessee to manufacture and sell electric submersible pumps up to 12HP; clause (ii) dealt with supply to the assessee with a copy of patents deposited in India and in force in various countries such as United States, Germany and England; clause (iii) provided that the assessee will have exclusive rights to manufacture and sell the above pumps within India and imposed an obligation on the assessee not to assign their rights and duties under the licence or to grant any sub-licence to third parties for the manufacture of the aforesaid pumps without the permission of Aturia; cla