Bengal Tiger Line Pte Ltd. Vs DCIT (ITAT Chennai)

This case involves Bengal Tiger Line Pte Ltd. appealing a tax assessment on its international shipping income. The company argues that under Article 8 of the India-Singapore Double Taxation Avoidance Agreement (DTAA), such income should only be taxed in Singapore, its country of residence, not in India. The appeal challenges the Assessing Officer's and Dispute Resolution Panel's decision to tax this income in India.

IN THE INCOME TAX APPELLATE TRIBUNAL , ‘D’ BENCH, CHENNAI

BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND
SHRI G. MANJUNATHA, ACCOUNTANT MEMBER
I .T. (TP ) A. No . 11 / CHNY/ 2 020
Assessm ent Ye ar : 2 015- 16 )

M/s. Bengal Tiger Line Pte Ltd.,
Indian Chamber Building Annexe,
1st Floor, N.6, Esplanade,
Chennai – 600 108.
(Appellant)

Vs

The DCIT,
International Taxation 1(1),
Chennai – 600 006.
P AN: AADCB68 64F
Respondent)
 
Appellant by : Shri S.P. Chidambaram, Advocate
Respondent by : Shri S. Bharath,CIT &
Ms. R. Anitha, JCIT
D at e of he ar in g : 22.10.2020
Dat e of P ron oun ceme nt : 06.11.2020

O R D E R

Per G. MANJUNATHA, AM:

This appeal filed by the assessee is directed against the final assessment order passed by the Assessing Officer u/s.143(3) read with section 144C(13 ) of the Income Tax Act, 1961 (hereinafter the ‘Act’) dated22.11.2019, which in turn passed in pursuant to directions of the Dispute Resolution Panel (DRP)-2, Bengaluru u/s.144C(5) of the Act dated 23.09.2019 and pertains to assessment year 2015-16.

2. The assessee has raised the following grounds of appeal:-

1. The order of the Deputy Commissioner of Income Tax. International Taxation l(1), Chennai ["AO/Assessing Officer’] is contrary to law, facts and circumstances of the case.

2. International shipping income from freight operations assessed to tax in India.

2.1 The directions of the Dispute Resolution Panel (DRP) - 2, Bengaluru ('DRP') and the consequential final assessment order is erroneous in so far asassessing the international shipping income from freight operations as income taxable in India under section 44B of the Act.

2.2 The AO / DRP ought to have appreciated that as per the provisions ofArticle 8 of the India - Singapore DTAA, any shipping income of a non-resident is taxable only in the country of residence, i.e. Singapore and as such cannot be assessed to tax in India.

2.3 The AO / DRP ought to have appreciated that the essential conditions for invoking the provisions of Article 24 of the DTAA is not satisfied and therefore it cannot be invoked.

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