Assessee, a UAE based company, entered into time charter contract with PSCL for transporting coal from one port to another through its ship. Assessee in turn had chartered vessel from PO again on time charter basis. In return of income, assessee had disclosed receipts of transporting coal as shipping business and had taxed same under section 44B. Assessing Officer held that payment received by assessee is in nature of royalty and taxable under section 9(1)(vi) of the Act. On appeal the Tribunal held that there was no absolute right to use of vessel had been given to charterer.Payment received by assessee from time charter of vessel was not in nature of royalty and, hence, same was not taxable under section 9(1)(vi). Since agreement and payment received by assessee was for carriage of goods and for operating ships, therefore income of assessee had rightly been offered to tax under section 44B of the Act.  (AY. 2019-20)