Treaty interpretation on inland cargo transport income followed binding precedent, so the tax appeals were not examined on merits.

Income from inland transportation of cargo within India was considered under Article 8(2)(b)(ii) and Article 8(2)(c) of the India-Belgium tax treaty. The Court noted that the issue was already covered by its earlier binding decision on the same legal question, and the parties accepted that position. On that basis, the appeals were not entertained and were disposed of without examination of the treaty merits.

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Issues: Whether income from inland transportation of cargo within India fell within Article 8(2)(b)(ii) and Article 8(2)(c) of the tax treaty between India and Belgium and was therefore not taxable in India.

Analysis: The Court noted that the parties agreed the issue stood covered in favour of the assessee by an earlier decision of the Court on the same legal question. In view of that concession, the questions raised in the appeals were not entertained.

Conclusion: The question was answered in favour of the assessee and against the Revenue.

Final Conclusion: The appeals were disposed of without examination of the merits of the treaty issue, following the binding earlier decision.

Ratio Decidendi: Where the legal issue raised is already covered by an earlier binding decision of the Court, the appeal on that issue need not be entertained and may be dismissed.

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