The assessee is a company incorporated in and domiciled in the UAE which is engaged in business of operation of ships in international traffic. The asseessee claimed exemption in respect of entire freight receipts. The Assessing Officer allowed only partial exemption. On appeal the Tribunal held that benefit of article 8 of Indo-UAE Treaty must be extended to entire freight receipts, irrespective of whether earnings are relating to feeder vessels or by ships in international traffic. (AY. 2016-17)
Avana Global FZCO v. DCIT(IT) (2021) 191 ITD 627 (Mum.)(Trib.)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Business of operation of ships in international traffic-Treaty must be extended to entire freight receipts, irrespective of whether earnings are relating to feeder vessels or by ships in international traffic-DTAA-India-UAE. [S. 90, Art. 8]