Gujarat Court October 1968 Judgments

Commissioner of Income-tax, Gujarat Ii Vs. Alembic Glass Industries Lt ...

Court: Gujarat

Reported in: [1969]71ITR752(Guj)

Divan, J.1. In this reference two assessment years are involved and this joint reference had been made under section 66(1) of the Income-tax Act, 1922, and section 256(1) of the Income-tax Act, 1961. The assessment years are 1961-62 and 1962-63, the corresponding previous years being the calendar years 1960 and 1961. The assessee is a company manufacturing glassware; and it deputed three of its technicians to the United States of America to enable them to obtain practical training in the manufacture of heat-resisting glassware. The training was imported by Thatcher Glass Manufacturing Co. incorporated in the U.S.A. In connection with this practical training, the assessee-company paid a sum of Rs, 71,625 (15,000 dollars) by way of fee to Thatcher Glass Manufacturing Co. and a further sum of Rs, 56,302 was spent by the assessee-company for the assessment year 1961-62 for travelling, lodging and other expense of the employees. A further sum of Rs. 3,489 was spent in the same connection by...