2016 (9) TMI 1519 - HC - Income Tax

Exemption of slot charter income under Indo-German DTAA affirmed by following comparable Indo-UK precedent; appeal allowed.

Exemption of income from slot chartering was held to fall within Article 8 of the Indo-German DTAA by applying treaty interpretation and comparative ... Exemption of Income by way of slot chartering from operations of ships under Article 8 of the DTAA - DTAA with UK /Germany - HELD THAT:- Tribunal has allowed the Respondent's appeal by following the decision of this Court in Director of Income Tax (International Taxation) v/s. Balaji Shipping UK Ltd., [2012 (8) TMI 681 - BOMBAY HIGH COURT] In the above case, this Court was concerned with Article 9(1) of the Indo­-UK DTAA. In the present case, Article 8 of Indo-­German ­DTAA which is similar to Article 9(1) of the Indo­-UK DTAA, arises for consideration. Therefore, the impugned order allowed the Respondent-­Assessee's appeal before it by following the decision of this Court in Balaji Shipping UK Ltd., [2012 (8) TMI 681 - BOMBAY HIGH COURT]. Revenue very fairly states that the issue stands concluded in favour of the Assessee - no substantial question of law arises Issues:Challenge to order of Income Tax Appellate Tribunal for Assessment Year 2007-08 regarding exemption under Article 8 of DTAA for income from slot chartering.Analysis:The High Court considered an appeal challenging the order of the Income Tax Appellate Tribunal regarding the exemption of income from slot chartering under Article 8 of the DTAA for the Assessment Year 2007-08. The Revenue raised the question of whether the income of the assessee from slot chartering should be considered as part of the income from operations of ships exempt under Article 8 of the DTAA. The Tribunal's decision was based on a previous judgment of the Court related to a similar provision in the Indo-UK DTAA. The Court noted that the impugned order allowed the appeal of the respondent-assessee by following the decision in a specific case. The Revenue's counsel acknowledged that the issue was settled in favor of the assessee based on the previous decision. Consequently, the Court found that the framed question did not raise any substantial question of law and dismissed the appeal without any costs.