Article 8 treaty relief extends to feeder-vessel freight income; TDS credit claim remanded for verification.

Freight income from feeder-vessel or slot-hire operations was treated as eligible for Article 8 relief under the India-Germany DTAA because the issue had already been consistently decided in the assessee's favour in earlier years and no change in facts or law was shown. The tribunal followed the earlier binding view and allowed treaty relief. The claim for TDS credit required verification of the records, so that matter was remanded to the Assessing Officer for examination and grant of credit in accordance with law.

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Issues: (i) Whether freight earnings from transportation of cargo through feeder vessels were eligible for relief under Article 8 of the India-Germany DTAA; (ii) Whether the assessee was entitled to credit for tax deducted at source.

Issue (i): Whether freight earnings from transportation of cargo through feeder vessels were eligible for relief under Article 8 of the India-Germany DTAA.

Analysis: The issue was recurring and had already been decided in the assessee's own case for earlier assessment years. The coordinate bench and the jurisdictional High Court had consistently held that freight income from feeder vessels or slot hire arrangements forms part of the benefit available under Article 8. No material change in facts or law for the year under consideration was shown. Following the earlier binding and consistent view, the freight charges earned from feeder vessels were held to qualify for treaty relief.

Conclusion: The issue was decided in favour of the assessee.

Issue (ii): Whether the assessee was entitled to credit for tax deducted at source.

Analysis: The TDS credit claim required verification by the jurisdictional Assessing Officer. The matter was not finally rejected on merits and was instead sent back for examination of the available records and grant of credit in accordance with law after necessary verification.

Conclusion: The issue was restored to the Assessing Officer and the relief was allowed for statistical purposes.

Final Conclusion: The appeal succeeded on the principal treaty-relief issue, while the TDS-credit dispute was sent back for verification, leaving the assessee with partial substantive relief and a partial remand.

Ratio Decidendi: Freight income from feeder-vessel or slot-hire operations is eligible for Article 8 treaty relief where the issue has already been consistently decided in the assessee's favour and no change in facts or law is shown.

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