2025 (4) TMI 2221

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....-8 of the DTAA between India and Singapore towards the profits from operation of ships in International Traffic by the assessee. 2. We will first consider the appeal filed for AY 2016-17 for adjudication. The assessee is a non-resident company incorporated as per the regulations of Singapore and is a tax resident of Singapore. The assessee is engaged in the business of operation of Ships in International Traffic and earns freight income from the vessel voyages performed. The assessee filed the return of income for AY 2016-27 on 22.09.2016 declaring an income of Rs. 5,21,38,908/- which included freight income of Rs. 5,06,01,816/- and interest income of Rs. 15,37,092/-. The assessee in the return of income declared income @ 7.5% of the fre....

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....he exemption of income under DTAA and therefore the assessee calculated the income as per the provisions of section 44B and claimed the benefit of exemption under Article-8 of DTAA between India and Singapore as relief under section 90 of the Act. The ld. AR argued that by denying the relief of tax the revenue has denied the benefit of Article-8 to the assessee which is not correct. 4. The ld DR on the other hand vehemently supported the orders of the lower authorities. 5. We heard the parties and perused the material on record. We notice that the assessee has offered 7.5% of the total receipts from the operation of Ships in the International Traffic as Business Income under section 44B of the Act while filing the return of income. Th....

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....to claim exemption under the DTAA. It is also relevant to note here that only the original return is processed and not the revised return where the country code for tax relief has been corrected as Singapore. In view of these discussion, and considering the fact that the revenue has not disputed that the assessee is otherwise eligible for exemption under Article 8 of DTAA between India and Singapore, we deem it fit to remit the impugned issue back to the AO. The AO is directed to allow the tax relief claimed by the assessee under section 90 in the return of income to the extent of the income which is eligible for exemption under Article-8 of the DTAA between India and Singapore. Needless to say that the assessee be given a reasonable opport....