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TMI Blog2000 (10) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 1989-90. The only grievance of the Department is pertaining to the relief granted under the DTA agreement with Japan. The assessee is a non-resident shipping company who suffered a world loss. As per the DTA agreement between India and Japan, the assesseecompany was entitled for 50 per cent. relief on the total tax payable by it. The case of the assessee travelled widely within the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and India does not expressly or even impliedly contain such a condition. The Commissioner of Income-tax (Appeals) observed in his order that the relief is given irrespective of the fact whether the Japanese company suffered a total loss which may encompass all its operations carried out throughout the world. According to him, the only crucial condition is that the Japanese company should have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent that in case the profits are derived from the other State, i.e., in this case India, then India is authorised to charge tax on such profits, but the same shall not exceed 50 per cent. of the tax otherwise imposed by the taxation law of India. We do not find any condition that the profit should be taxed both in India as also in Japan in which case probably, in our opinion, relief to the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee can take benefit of the double tax agreement. Under section 44B of the same Act profits from shipping business are specially defined. In these circumstances, whether losses were suffered in Japan or on a world-wide basis are of absolutely no relevance. The assessee satisfies the two main conditions, which are that the profit should be derived from operation of ships and that the ships s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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