Technical services fee received by it in terms of those contracts was exempt from tax by virtue of proviso to section 9(1)(vii)

IT/ILT: Where assessee-company entered into contract with Indian companies for supply of technical know-how prior to 1-4-1976, technical services fee received by it in terms of those contracts was exempt from tax by virtue of proviso to section 9(1)(vii)
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[2014] 49 taxmann.com 8 (Bombay)
HIGH COURT OF BOMBAY
Commissioner of Income-tax, Bombay City -III
v.
Montedison of Italy*
S.C. DHARMADHIKARI AND B.P. COLABAWALLA, JJ.
IT REFERENCE NO. 202 OF 1993†
AUGUST  8, 2014
Section 9 of the Income-tax Act, 1961 read with article 12 of the Model OECD Convention - Income - Deemed to accrue or arise in India (Royalty/Fees for technical services) - Whether where assessee-company entered into contract with Indian companies for supply of technical know-how prior to 1-4-1976, technical services fee received by it in terms of those contracts was exempt from tax by virtue of proviso to section 9(1)(vii) - Held, yes [Para 10] [In favour of assessee]