NAN LION SHIP MANAGEMENT LLC,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) -3(3)(1), MUMBAI

ITA 1857/MUM/2022Status: DisposedITAT Mumbai30 December 2022AY 2019-2040 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the payment received by the assessee was not in the nature of royalty and was correctly offered to tax under Section 44B as income from the business of operating ships. The judgment of the Madras High Court relied upon by the lower authorities was distinguished.

What were the facts?

The assessee, a UAE-based company, entered into a time charter contract to transport coal within India. The Assessing Officer and DRP treated the receipts as 'royalty' under Section 9(1)(vi) of the Income Tax Act, disagreeing with the assessee's offer of tax under Section 44B.

What were the issues?

Whether income from a time charter of a ship for carriage of goods within India constitutes 'royalty' or income from shipping business taxable under Section 44B.

Which sections of the Income-tax Act were involved?

Section 9(1)(vi),Section 44B

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA, JM & SHRI GAGAN GOYAL, AM

For Appellant: Shri Nishit Gandhi, Shri Soumendu Kumar Das, DR सुनवाईकीतारीख/
For Respondent: Shri Soumendu Kumar Das

Per Amit Shukla, Judicial Member:

The aforesaid appeal has been filed by the assessee against the final assessment order dated 27.05.2022, passed by Ld. AO u/s 2 Nan Lian Ship Management LLC 143(3) r.w.s. 144C(13) for the AY 2019-20 in pursuance of direction given by Ld. DRP vide order dated 18.05.2022 u/s 144C(5).

2.

In the grounds of appeal, assessee has challenged the direction of Ld. DRP in treating the amount

The order continues below.

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