https://www.taxtmi.com/caselaws?id=217724 The ITAT Chennai 'D' Bench ruled in favor of the assessee regarding the assessment of tax liability on hire charges paid to Foreign Shipping Companies (FSCs). The Tribunal held that the payments to FSCs were not 'royalty' but for services, covered under sec. 172 of the Income-tax Act, 1961. As the FSCs had already paid tax under sec. 172, double assessment was unjustified, leading to the cancellation of tax liability for the assessee. Additionally, the Tribunal clarified that being a 'representative assessee' did not entail additional tax liability when the FSCs had fulfilled their tax obligations, aligning with DTAA provisions and previous ITAT judgments. en-us Tue, 03 Apr 2012 00:00:00 +0530 Tue, 23 Oct 2012 22:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217724 The ITAT Chennai 'D' Bench ruled in favor of the assessee regarding the assessment of tax liability on hire charges paid to Foreign Shipping Companies (FSCs). The Tribunal held that the payments to FSCs were not 'royalty' but for services, covered under sec. 172 of the Income-tax Act, 1961. As the FSCs had already paid tax under sec. 172, double assessment was unjustified, leading to the cancellation of tax liability for the assessee. Additionally, the Tribunal clarified that being a 'representative assessee' did not entail additional tax liability when the FSCs had fulfilled their tax obligations, aligning with DTAA provisions and previous ITAT judgments. Case-Laws Income Tax Tue, 03 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217724