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4. As far as question No. (1) is concerned, Mr. Dastur has referred to an unreported decision given on August 11, 1977, in Income-tax Reference No. 32 of 1968 CIT v. Merck Sharp & Dohme of India Ltd.-since reported in [1983] 140 ITR 334 (Bom) (Appendix) (infra) of this very assessee where the decision of this court in CIT v. Bayer Agrochem Ltd. [1982] 134 ITR 240 (Bom) has been followed. In accordance with the said decision, question No. (1) is answered in the affirmative and in favour of the assessee.