Atlantic Shipping Pvt. Ltd. Vs ITO (Gujarat High Court)
Material Facts: The appellants, Indian companies providing shipping agency services, acted as agents for a Singapore tax resident engaged in operating owned and chartered ships in international traffic. Vessel voyage returns were filed under section 172(3) of the Income-tax Act claiming nil tax by relying on Article 8 of the India-Singapore DTAA. The Assessing Officer denied the benefit, invoking Article 24 on the ground that freight amounts had been remitted to a bank account in London instead of Singapore. During appellate proceedings, the assessees relied on a certificate dated 09.01.2013 issued by the Inland Revenue Authority of Singapore (IRAS) stating that the charter income was assessable in Singapore on an accrual basis and that Article 24.1 was not applicable.
Procedural History: The CIT(A) declined to admit the IRAS certificate as additional evidence and upheld the Assessing Officer’s view. The ITAT held that Article 8 was subject to Article 24, distinguished the Gujarat High Court’s earlier decision, and restored the matter to the Assessing Officer for verification of the IRAS certificate, directing that relief be granted if no material was found to rebut it. Following remand, the Assessing Officer passed fresh assessment orders, which were challenged through Special Civil Applications along with the Tax Appeals.
