The Income Tax Appellate Tribunal (ITAT) ruled that no tax is suitable on the shipping income of foreign vessels beneath the India-Singapore Tax Treaty.
The taxpayer is the owner of Bengal Tiger Line Pte Ltd. is a citizen of Singapore and associated in the business enterprise of ships in the International world. The freight beneficiary i.e. taxpayer is a multiple port sailor in southeast Asia and the subcontinent in the financial year 2014- 15.
The case is related to the claimed exemption from income tax over shipping operations coming under the India-Singapore tax treaty. The treaty states that the operation in international traffic is tax consideration in Singapore.
AO with not accepting the advantage of article 8 India Singapore DTAA and moreover taxed income undergone from shipping services in India beneath section 44B of the Act on the basis of the Article 24 of India Singapore DTAA restricts the advantage of the privilege if the income received outside India will be considered from tax beneath Singapore Income Tax laws 
