Transport income classification under double tax schedule prevails over residuary entry for boat charter receipts.

Receipts from charter hire of boats were treated as falling within the specific transport entry in the double taxation schedule rather than the residuary entry. The schedule allocated income by source or transaction category, and item 5(g) covered transport by ships, air or road without limiting itself to freight alone. Item 9 operated only as a residual provision for income not covered elsewhere. Because the receipt arose from transport by ships and the traffic originated in the relevant territory, the specific transport classification prevailed and the residuary item did not apply.

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Issues: Whether the receipt from charter hire of boats fell within item 5(g) of the Schedule to the agreement for avoidance of double taxation or within the residuary item 9.

Analysis: The agreement required income from specified sources or categories of transactions to be allocated according to the Schedule. Item 5(g) covered transport by ships, air or road and did not confine itself to freight alone. Item 9 operated only as a residuary provision for income not falling within any specific item. Since the receipt arose from transport by ships and the traffic originated in the relevant territory, the receipt was within item 5(g) and not item 9.

Conclusion: The receipt was covered by item 5(g) and was not taxable in India under item 9; the answer was in favour of the assessee on the reference, but the appeal itself failed and the Revenue succeeded in resisting interference.

Final Conclusion: The reference was answered by holding that the impugned receipt fell within the transport category in the Schedule, and the appeal was dismissed with costs.

Ratio Decidendi: Where a payment is derived from transport by ships, the specific transport entry in a double taxation schedule prevails over the residuary entry, and the label of the receipt does not control its tax character.

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