2015 (8) TMI 1018 - HC - Income Tax

Income from inland transportation of cargo within India - whether was covered under Article 8(2)(b)(ii) and 8(2)(c) of the tax treaty between India and Belgium and therefore not liable for tax in India? - Held that - The issue arising in these appeals stand covered in favour of the respondent-assessee and against the revenue by the decision of this court rendered in the matter of Director of Income Tax v. Balaji Shipping UK Ltd. 2012 (8) TMI 681 - BOMBAY HIGH COURT wherein held that income from utilizing slot hire facilities as availing of in these cases would fall within Article 9(1) for slot hires have a closer nexus, connection and relationship to the actual operation of ships - Decided in favour of assessee.

Summary

The Bombay High Court dismissed Income Tax Appeal No. 147 of 2009 along with Income Tax Appeal No. 952 of 2011. The common questions of law raised in both appeals for assessment years 2001-02 and 2003-04 were related to the taxation of income from inland transportation of cargo within India under the tax treaty between India and Belgium. The court stated that the issue was already decided in favor of the respondent-assessee in a previous case, and therefore, both appeals were dismissed with no order as to costs.