1. Both the references involve common questions and, therefore, they are disposed of by a common order. For convenient disposal of both these references, the facts given in Miscellaneous Civil Case No. 440 of 1990 are taken into consideration.

2. Both the parties aggrieved by the order of the Income-tax Appellate Tribunal dated September 29, 1989, moved the Tribunal for making a reference to this court. Accordingly, the Tribunal has made a reference to this court framing two questions--one at the instance of the assessee and the other at the instance of the Revenue.

3. The question referred at the instance of the Revenue for our answer reads as under :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that only 20 per cent, of the fee of 2,04,032 francs was taxable ?"

4. The question referred at the instance of the assessee reads as under :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that there was an element of royalty included in the fee of 2,04,032 Swiss francs and if so the Tribunal was right in estimating 20 per cent, of the gross fee being the value of the royalty ?"

5. The brief