TaxTMI 
TaxTMI 
2025 (10) TMI 428
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....r short "the Act") inconsonance with the order passed by the Dispute Resolution Panel (DRP) dated 11.11.2024 u/s 144C(5). 2. The assessee has raised the following grounds of appeal:- "1. On the facts of the case and in law, the learned Assessing Officer erred in making, and the learned DRP has erred in confirming, the impugned addition of Rs. 10, 83, 36,512/-(net after deducting 20% expenses) received by the assessee on account of Delivery Order Charges as an integral part of the consideration for air transportation of cargo, to the income returned by the assessee. 2. On the facts of the case and in law, the learned Assessing Officer erred in misconstruing the nature of the net receipt of Rs. 10,83,36,512/- on account o....
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....sions of Article 8 of the India Turkey Double Taxation Avoidance Agreement, and the learned Dispute Resolution Panel erred in confirming the said action of the Assessing Officer. 5. On the facts of the case and in law, the reasoning adopted by, and conclusions arrived at by, the learned Assessing Officer and by the Dispute Resolution Panel are contrary to the scheme of the taxation of profits from the operation of aircraft in international traffic- as envisaged in Article of the India Turkey DTAA and as envisaged in the UN and OECD Model Convention Commentaries on the materially similar provisions, contrary to the judicial precedents from the Hon'ble High Courts, and contrary to the actual facts of the case clearly discernable ....
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....in the operations of aircraft in international traffic. Coming to the sole substantive issue herein, the assessee had derived revenue of Rs. 4,46,72,098/- representing it's delivery order charges in cargo transportation business. Both the learned lower authorities have admittedly held that these cargo delivery charges realized/received in India, at the time of handing over of the goods to the consignee concern(s), are taxable in India. The assessee, therefore, is aggrieved against the learned lower authorities' action to this effect. 5. The assessee's case all along has been that the corresponding transportation in air cargo activities does not get completed till the time it issues the consignment to the receiv....
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....tion; and (c) the rental of ships or aircraft incidental to any activity directly connected with such transportation. 3. Profits of an enterprise of a Contracting State described in paragraph 1 from the use, maintenance or rental of containers (including trailers, barges, and related equipment for the transport of containers) used in connection with the operation of ships or aircraft in international traffic shall be taxable only in that State. 4. The provisions of paragraphs 1 and 3 shall also apply to profits from participation in a pool, a joint business or an international operating agency. 5. For the purposes of this Article, interest on funds connected with the operation of ships or aircraft in inte....