DCIT (IT) 1.1.2, MUMBAI, MUMBAI vs. ARC LINE, MAURITIUS

ITA 2344/MUM/2026Status: DisposedITAT Mumbai30 June 202628 pages
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What were the facts?

The appeals concerned the denial of benefits under the India-Mauritius Double Taxation Avoidance Agreement (DTAA) due to the Place of Effective Management (POEM) being in Dubai, and the existence of a Permanent Establishment (PE) in India. The assessee argued against the existence of a fixed place PE and a Dependent Agent PE (DAPE).

What did the Tribunal hold?

The Tribunal held that the assessee did not have a fixed place PE or a DAPE in India, thus allowing the benefit of the DTAA. It also ruled that interest on income tax refunds should be taxed as per the DTAA rates.

What were the issues?

Whether the assessee had a Permanent Establishment (PE) in India and if the benefits of the India-Mauritius DTAA were applicable, and the correct rate of tax on interest on income tax refunds.

Which sections of the Income-tax Act were involved?

Section 44B,Section 234C

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Heard together (2 matters)

ITA Nos. 520/Mum/2026
ITA Nos. 583/Mum/20

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL “I” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER

IT(IT)A Nos. Assessment Year 520/Mum/2026 2015-16 521/Mum/2026 2016-17 522/Mum/2026 2017-18 523/Mum/2026 2018-19 524/Mum/2026 2023-24

Bay Lines Deputy Commissioner of Income C/o. Freight Connection India Private Kautilya Bhavan, C-41 to C-42, Sion (East), Mumbai-400 022 G Block, Bandra Kurla Complex, Bandra (E), Mumbai-400 005 PAN/GIR No. AABCB 5853 G (Assessee) : (Revenue) and ITA Nos. Assessment Year 593/Mum/2026 2015-16 525/Mum/2026 2016-17 594/Mum/2026 2017-18 595/Mum/2026 2018-19 596/Mum/2026 2023-24

Deputy Commissioner of Income Tax Bay Lines International Tax, Circle 1(2)(1) C/o. Freight Connection India 6TH Floor, Kautilya Bhavan, G Block, Private Limited Bandra Kurla Complex, Bandra (E), Vs. 3C Runwal and Omkar Esquare, Mumbai-400 005 Sion Chunnabatti Junction, Sion (East), Mumbai-400 022 PAN/GIR No. AABCB 5853 G (Revenue) : (Assessee)

2 ITA Nos. 520/Mum/2026 & others - Bay Lines ITA Nos. 583/Mum/20

The order continues below.

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