Slot chartering income treated as ship-operation income and exempt under the Indo-German DTAA following prior precedent.

Income from slot chartering was treated as income from the operation of ships under Article 8 of the Indo-German DTAA because the treaty language was materially similar to an earlier provision already construed by the Court. Applying that precedent, the Tribunal's view was upheld and the Revenue's challenge failed, with the Court noting that no substantial question of law arose. The result was that slot chartering income was accepted as exempt shipping income on the same construction previously applied to the analogous treaty clause.

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Issues: Whether income from slot chartering forms part of income from operations of ships and is exempt under Article 8 of the Indo-German DTAA.

Analysis: The Tribunal had allowed the assessee's claim by following an earlier decision of the Court which had considered a similar treaty provision and held that such income fell within the scope of exempt shipping operations. The treaty article in the present case was materially similar to the provision earlier construed, and the Revenue accepted that the issue was already concluded against it by that precedent. In these circumstances, no substantial question of law arose for further consideration.

Conclusion: The issue was answered in favour of the assessee, and the Revenue's challenge was rejected.

Ratio Decidendi: Where the relevant DTAA provision is materially similar to an earlier treaty clause already interpreted by the Court, the same construction applies and income from slot chartering may be treated as exempt income from ship operations.

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