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2020 (1) TMI 1555 - AT - Income TaxTaxability of freight charges from transportation of cargo through feeder vessels - whether freight income from transportation of cargo through feeder vessels is not eligible for benefit under Article 8 of India-Germany DTAA? - HELD THAT:- In the case of the assessee for A.Y. 2007-08 in Hapag–Llyod Container Line GMBH Vs. Addl. Director of Income-tax (International Taxation), Mumbai [2012 (5) TMI 9 - ITAT MUMBAI] keeping in view the observations of the Hon‟ble High Court in the case of Director Of Income-tax (International Taxation) Vs. Balaji Shipping U.K Ltd. [2012 (8) TMI 681 - BOMBAY HIGH COURT], had held, that the assessee would be eligible for exemption under the treaty provisions in respect of revenue that was earned by it from feeder vessels obtained on slot hire arrangement basis We have perused the aforesaid orders and find ourselves to be in agreement with the view taken by the Tribunal in the aforesaid years in the case of the assessee. On the basis of our aforesaid observations, we are of the considered view that the benefits of Article 8 of the India-Germany DTAA would also be available to the assessee in respect of the revenue that was earned by the assessee from the feeder vessels obtained on slot hire arrangement basis. Accordingly, we set aside the order of the CIT(A) in terms of our aforesaid observations. The Grounds of appeal No. 2 to 4 raised by the assessee before us are allowed. Agency PE in India - HELD THAT:- We are further of the view that as we have held that the benefit of Article 8 of the India– Germany DTAA would also be available to the assessee in respect of the revenue earned by it from the feeder vessels obtained on slot hire arrangements, therefore, the Grounds of appeal Nos. 5 to 7 as to whether the assessee had an agency PE in India having been rendered as academic are not being adverted to and adjudicated upon by us and are left open. The Grounds of appeal No. 5 to 7 are dismissed in terms of our aforesaid observations. Interest levied on the assessee u/s 234B - HELD THAT:- We find, that the said issue is covered in favour of the assessee by the decision of the Hon’ble High Court of Bombay in the case of DDIT(IT) Vs. NGC Network Asia LLC [2009 (1) TMI 174 - BOMBAY HIGH COURT] as held that interest under Sec. 234B would not be applicable to a non-resident assessee.
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