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TMI Blog2023 (3) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... esolution Panel. When there is specific Statute/Section given under any Act for a particular classified category then that Section will be applicable to that particular category only. AR never contended that the assessee does not fall in that category of shipping business of non- resident. Thus, the additional ground taken by the assessee is dismissed. Benefit as per DTAA between India UAE as claimed by the appellant in return of income filed u/s.172(3) - It is undisputed fact that the assessee is a limited liability company which is non-resident. As relates to commercial licence of the company, the same is issued by Dubai Maritime City which is UAE country. Besides this, the assessee has also submitted the Bank details of Standar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and controlled only in UAE. In fact, the company and its business is operational from UAE only. Thus, it is a tax resident of UAE and, therefore, treaty between India and UAE (DTAA) is applicable in the present case. Thus, Article 8 where Shipping Business and its profit has been determined in respect of taxability the same is applicable in the present case and thus the assessee is entitled for the treaty benefit. The Assessing Officer was not right in denying the exemption and hence the addition does not sustain. Therefore appeal allowed. - ITA No.123/RJT/2012 And ITA No.124/RJT/2012 - - - Dated:- 6-3-2023 - Ms. Suchitra Kamble, Judicial Member And Shri Waseem Ahmed, Accountant Member For the Appellant : Shri Vimal Desai, AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) and also confirmed the demand of Rs.4,88,471/- arising therefrom. 3. The Learned CIT(A) erred in holding that SABA Shipping International LLC Dubai was not wholly managed controlled from UAE and hence it is not resident of UAE as per Article No.4 of DTAA between India UAE and hence benefit of DTAA between India UAE is not available to the appellant. 3. Firstly we are taking ITA No.124/RJT/2012 M/s. Shantilal Shipping Chartering Pvt. Ltd., a local Agent in India, had filed the provisional return under Section 172 of the Income Tax Act, 1961 on 10.06.2008 in respect of freight earned on corn transported through Vessel M.V.A. SHUJAA-1. In the said return, income of Rs.11,56,692/- was declared being 7.5% of the amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 172(4) of the Act will not be applicable in the present case. The Ld. AR further submitted that the Assessing Officer who have proceeded on the basis of Section 143(3) of the Act for which Section 144C of the Act has to be invoked. Thus, the Ld. AR submitted that the Assessment Order is null and void. 6. The Ld. DR submitted that the assessee company is non-resident and is in Shipping business and Section 172(4) of the Act and Section 172(7) of the Act which is for summary assessment is squarely applicable in assessee s case. 7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that the Income Tax Act specifically have the provision under Section 172 of the Act for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dubai Maritime City, Passport copies of the Directors of the Company and the clarification related to UAE resident of the Directors as well as that of Company. Before the CIT(A) the said documents were also produced but the CIT(A) as well as the Assessing Officer overlooked the details and granted exemption under DTAA between India and UAE as the assessee is a tax payer/resident of UAE. 9. The Ld. DR submitted that during the assessment proceedings, the assessee did not file the company s AGM. Ld. DR pointed out that the AGM taken into general assembly of UAE and thereafter the UAE residency can be obtained but in assessee s case the same was not done and three of the Directors/Partners are of the Nationality of Yemeni. The Ld. DR relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is applicable to assessee company or not is the question for which Article 4(1) defines the residents and it clearly set out that the individual who is present in the UAE for period or periods totalling in the aggregate at least 183 days in the calendar year concerned, and a company which is incorporated in the UAE and which is managed and controlled wholly in UAE. In the present case, the company is incorporated in UAE and is managed and controlled only in UAE. In fact, the company and its business is operational from UAE only. Thus, it is a tax resident of UAE and, therefore, treaty between India and UAE (DTAA) is applicable in the present case. Thus, Article 8 where Shipping Business and its profit has been determined in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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