TMI Blog2012 (8) TMI 1211X X X X Extracts X X X X X X X X Extracts X X X X ..... n Bench of this Court admitted the appeal on the following question of law :- Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in (a) holding that the slot charges are entitled to the benefit of the tax treaty between the India and France ? 3. The appeal was directed to be heard along with Income Tax Appeal Nos. 3024 of 2009 and 3215 of 2009. By a separate order and judgment passed today, we dismissed ITA Nos.3024 of 2009 and 3215 of 2009 but only after the conclusion of the arguments in this appeal as well. In fact much of what we said in that judgment was based, in addition to Mr.Singh and Mr.Kaka's submissions in these appeals or Mr.Singh and Mr.Irani's submission in this appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income Tax (Appeals) and the Tribunal however, held the respondent to be entitled to the benefit of the DTAA. 8(A). It was not disputed that the respondent owned or chartered or otherwise actually operated ships though not within the Indian territorial waters. In this appeal, the respondent arranged for the carriage of goods of its clients by sea from ports in India to foreign ports. As the respondent's vessels did not ply in Indian territorial waters, it availed of the slot hire facilities obtained by it on ships owned or chartered by others for the carriage of the goods from the ports in India upto the hub ports also abroad from where the goods were further carried on vessels owned or chartered or otherwise operated b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Contracting State. Subsequently, only the provisions of paragraph 1 shall be applicable. 3. The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency engaged in the operation of ships. 4. For the purposes of this article, interest arising on funds connected with the operation of ships in international traffic shall be regarded as profits derived from the operation of such ships, and the provisions of Article 12 shall not apply in relation to such interest. (B). Article 9(1) of the India France DTAA is almost identical to Article 9 (1) of the India U.K. DTAA. Article 9 of the India U.K. DTAA reads as under :- ARTICLE 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to juxtapose Article 9(1) of the India France DTAA and Article 9(1) of the India U.K. DTAA to indicate that the same are virtually identical :- Article 9(1) of the India France DTAA Article 9(1) of the India U.K. DTAA Article 9(1) of the India France DTAA DTAA Article 9(1) of the India U.K. DTAA 1. Profits derived by an enterprise of a Contracting State from the operation of ships in international traffic shall be taxable only in that Contracting State. 1. Income of an enterprise of a Contracting State from the operation of ships in international traffic shall be taxable only in that State. 10. In Director of Income Tax (Internatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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