Income Tax Act, 1961

--Double taxation relief--Agreement between India and Denmark Amount received on account shared cost of global tracking system--Assessee, a non-resident company, in the course of its international shipping business, received certain amount on account of shared cost of global tracking system which was considered as linked to the shipping income as per Article 9 of the DTAA. The assessing officer held such amount to be Royalty / Fees for technical services as per sections 9(1)(vi) and 9(1)(vii) of the Act as well as Article 13(4) of the DTAA. The Commissioner (Appeals) held the amount as profit derived from operation of ships in international traffic and hence not taxable in India as per Article 9(1) of DTAA. Held: The Commissioner (Appeals) held that profit derived from operation ships covered under article 9(1) of the DTAA by relying on the order passed by the Tribunal in assessee's own case for the earlier year. Revenue could not distinguish the facts of the case vis-a-vis the earlier year. Therefore, order passed by the Commissioner (Appeals) was upheld.

Income Tax Act, 1961, Sections 9(1)(vi) & 9(i)(vii)

DTAA between India and Denmark, Articles 9 & 13

Income Tax Act, 1961

--Double taxation relief--Agreement between India and Denmark Interest on income-tax refund--The assessee received interest under section 244A which was treated as income from operation of ships under Article 9(4)(a) of the India-Denmark DTAA and hence, the same was immune from taxation. The assessing officer held such amount to be falling under Article 12(6) of the DTAA and did not grant the benefit of Article 9(4). Held: Interest on income-tax refund fell under Article 12 of India and Denmark DTAA and was liable to tax. Such interest could not be considered as business income covered under Article 9(4) of DTAA between India and Denmark.