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Section 256, read with section 90, of the Income-tax Act, 1961 - Reference - Academic question - Commissioner initiated proceedings under section 263 and held that receipt by way of service fees by assessee, a foreign company, was assessable in its hands which was received from an Indian company - Tribunal held that aforesaid receipt constituted industrial or commercial profits and, therefore, was not taxable in India under provisions of Double Taxation Avoidance Agreement between India and foreign country - Whether a referable question arose from Tribunal's order - Held, no FACTS The Commissioner invoked the provisions of section 263 and held that the receipt by way of service fees by the assessee, a foreign company, from an Indian company was assessable in the hands of the assessee. On appeal, the Tribunal held that the aforesaid receipt constituted an industrial or commercial profits and, therefore, was not taxable in India under the provisions of double taxation avoidance agreement between India and the foreign country. The order of the Commissioner was cancelled. The reference application of the revenue was also rejected. On an application under section 256(2) : HELD In the instant case even if the question regarding the applicability of the provisions of double taxation avoidance agreement was answered in favour of the department, the result of the appeal would not be altered. The question was, thus, academic. Therefore, no useful purpose would be served in directing the Tribunal to refer the question. The application was, therefore, dismissed. CASE REFERRED TO Carborundum Co. v. CIT [1977] 108 ITR 335 (SC). G.S. Jetty, Mrs. Manjula Singh and K.C. Sidhwa for the Applicant. S.E. Dastur for the Respondent. JUDGMENT Sugla, J.-This is an application under section 256(2) of the Income-tax Act, 1961 ('the Act'). The questions sought to be raised are: "(1.)Whether, on…

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