2025 (9) TMI 1572

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....sessment year 2018-19. 2. The assessee in appeal has raised multiple grounds assailing assessment order. However, primary ground raised in the present appeal is against the findings of the Assessing Officer (AO) in bringing to tax amount of Rs. 983,45,42,010/- as income from royalty. 3. The brief facts of the case as emanating from records are: The assessee was incorporated in Singapore and he is engaged in the business of owning, operating and chartering of ships to carry dry bulk and break bulk cargo. It is a joint venture between Tata Steel Ltd. an Indian Company and NYK Holding B.V, a company incorporated in the Netherlands which is a subsidiary of Japanese company, Nippon Yusen Kabushiki Kaisha (NYK Japan). During the period rele....

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....ue has been decided in favour of the assessee by the Tribunal, as well as, by the Hon'ble High Court in AY 2016-17 & 2017-18, and directed the AO to grant relief if the issue in the present appeal is identical to the one already decided in assessee's case in the preceding assessment years. The AO in a mechanical manner and after referring to the decisions of the Tribunal and the Hon'ble High Court, still toed the old line and held the receipts as royalty taxable in India at the rate of 10% on gross basis. The AO failed to comply with the directions of the DRP. 5. Shri Nikhil Kumar Govila, representing the department fairly stated that the issue raised by the assessee in present appeal has been considered by the Tribunal in assessee's own....

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....eration, viz., income from coastal shipping, income from inward freight and income from outward freight. Insofar as, income from coastal shipping is concerned, the assessee has offered it to tax under section 44B of the Act. Whereas, income from inward freight and outward freight was claimed as exempt under Article 8 of the treaty. Interestingly, learned CIT has held the inward freight income as royalty and has directed the Assessing Officer to tax such income amounting to Rs. 903,54,20,929/- by applying the rate of 10% on gross basis. However, in respect of income from coastal shipping and outward freight, learned CIT has accepted the claim of the assessee as his specific direction is only with regard to the income from inward freight. Fur....