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Commissioner Of Income-Tax vs Hindustan Shipyard Ltd. on 8 April, 1975

In CIT v. Hindustan Shipyard Ltd. [1977] 109 ITR 158 (AP) a Division Bench of this court had construed the word "business connection". The non-resident company supplied diesel engines with accessories. The terms of the sale were that 90% of the value must be paid against the original set of documents to be submitted duly to the State Bank of India within fifteen days and the balance within six months. The net price included 5% commission payable to the non-resident company at Bombay. The property was to pass to the purchaser on delivery on board. The engine was agreed to be erected by the staff of the purchaser under the supervision of the erector and a supervision engineer was placed at the disposal of the purchaser by the non-resident company. It was held that "business connection" can be said to be established when "the thread of mutual interest runs through the fabric of the trading activities carried on outside and inside the taxable territory and there must be real and intimate connection between the two. The commonness of interest may be by way of management control or financial control or by way of sharing profits".
Andhra HC (Pre-Telangana) Cites 30 - Cited by 41 - Full Document

The Commissioner Of Income-Tax vs The Remington Typewriter Company ... on 16 December, 1930

In CIT v. Remington Typewriter Co. (Bombay) Ltd., AIR 1931 PC 42, a question arose whether there was a business connection between the assessee-company and the foreign company. The facts were that the assessee purchased the goodwill of its business in certain territory in India and towards consideration of the same allotted 60,000 shares to the non-resident company in the assessee-company. The capital of the assessee was divided into 60,000 shares only and by allotment of 60,000 shares to the non-resident company, the non-resident company became the owner of all the shares. It was held that the ultimate and complete control of the assessee was vested in the foreign company which owned all its shares and hence a business connection existed between the assessee and the non-resident company.
Bombay High Court Cites 11 - Cited by 3 - Full Document
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