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2023 (6) TMI 576 - AT - Income TaxTaxability of receipts on hire of vessel on a time charter basis - Royalty receipts u/s 9(1)(vi) - services rendered for the 'use' of industrial, commercial or scientific equipment - HELD THAT:- We find that in assessee’s own case in Smit Singapore Pte Ltd. [2020 (11) TMI 415 - ITAT MUMBAI] held that the receipts on hire of vessel, viz Smit Borneo, on time charter basis to Leighton India Contractors Private Limited is not in the nature of Royalty as per Article 12 of the India Singapore DTAA. Also see assessee own case for the assessment year 2015-16 [2021 (8) TMI 329 - ITAT MUMBAI]. Nothing has been brought on record to show that during the entire operation, navigation and management of the vessel, it was not in exclusive control and command of the assessee. The issue arising in the present appeal is recurring in nature and has been decided in favour of the assessee by the decisions of the coordinate bench of the Tribunal for the preceding assessment years. Decided in favour of assessee. Taxability of reimbursement of expenses - Once the main receipt, i.e. pertaining to chartering of vessel has been held to be not a Royalty, the reimbursement of expenses in relation to the same agreement cannot be held to be taxable as Royalty, in the present case, as the AO is also of the view that the receipts are intricately linked to the chartering income. Accordingly, the addition on account of reimbursement of expenses is deleted. Decided in favour of assessee.
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