AAR held that the returns were filed after the filing of the application and there was no pendency on the date of application. Merely because the assessee had declared income in the returns filed afterwards, it did not make the application infructuous. The details of the amount offered by it in its return of income in different years were not necessary to decide the issues raised.

Considering the facts of the case AAR also held that sale complete outside India therefore no income accrued or deemed to accrue in India. Fixed place of business is held to be permanent establishment.   Composite contract on turnkey basis for setting up butene-1 Plant services taxable in India. Design services inextricably connected with setting up of plant profits of  permanent establishment to be  taxed in India as business Income.