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2019 (7) TMI 1148 - AT - Income TaxAssessment of income of shipping company - tax demand raised u/s 172 - profits derived from operation of ship or international traffic - taxability in the contracting state - (DTAA) with Singapore - assesse claimed exemption whereas AO treat income as taxable alleging not filing of remittance proof - HELD THAT:- Since the assessee is non-resident and he is the owner of the ship, income is taxable in Singapore, but not in India. However, there is no evidence as per information filed by the assessee to show that the income representing voyage undertaken in India in June 2014 was admitted in the income tax return of the assessee filed in Singapore. In the instant case, though the representative assessee has filed the return of income u/s 172(3), he has not furnished any evidence to show that the assessee’s income was taxed on accrual basis or filed the evidence including the income relating to voyage undertaken in India. Therefore, in our considered opinion, the issue requires further examination with regard to admission of income on accrual basis in the contracting state. Hence, we deem it fit to remit the matter back to the file of the AO to re-examine the issue with regard to admission of income and filing the return in the contracting state and decide the same on merits. We direct the assessee to file necessary information or certificate confirming that the income relating to the voyage undertaken in India, in respect of the vessel, M. V. Arwad Queen was included in the return of income filed by the assessee or to obtain the certificate from the Inland Revenue Authority that in the assessee’s case also, the shipping income is taxed on accrual basis on similar lines of ST Shipping Company referred to in the case law relied upon by the assessee. Appeal of the assessee is allowed for statistical purpose.
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