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TMI Blog2012 (4) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... logous appeals for different Assessment Years by which the Tribunal dismissed the appeals preferred by the Revenue against the order of the CIT [Appeals]. 3. The only question that falls for determination in all these appeals is whether the Tribunal committed substantial error of law in holding that the assessee was not liable to tax in India as per Article 8 of the Double Taxation Avoidance Agreement [for short, DTAA hereafter] between India and UAE and accordingly was justified in deleting the tax levied by the Assessing Officer. 4. Tax Appeal No. 172 of 2011 is taken up as the lead matter for the purpose of discussion of facts, which are almost common in all these appeals except change of Assessment Years, amount involved, name of vess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cargo was loaded at the rate of USD.15-25 and it fetched total income of Rs. 14,77,153 at 7.5% after conversion of the amount into Indian Rupees. Similar assessments were made by the Assessing Officer in the other matters also. 8. In order to appreciate the question involved in the present appeals, it will be profitable to refer to Article 8 of the DTAA, which is quoted below: "1. Profits derived by an enterprise of a Contracting State from the operation by that enterprise of ships in international traffic shall be taxable only in that State. 2. For the purpose of this Article, profits from the operation of ships in international traffic shall mean profits derived by an enterprise described in paragraph (1) from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian ports. 10. After taking into consideration the above circulars issued by the Board and also the provisions contained in Article 8 of the DTAA, we find that both the Tribunal below and the CIT [Appeals] rightly held that in such a situation, the owner of the ship being admittedly a resident of UAE, there was no scope of taxing the income of the ship in any of the ports in India. The agreement between the two countries has ousted the jurisdiction of the taxing officers in India to tax the profits derived by the enterprise once it is found that the ship belongs to a resident of the other contracting country and such position has also been clarified by the Circulars issued by the Board as indicated above. 11. We thus find that no substan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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