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National Thermal Power Co. Ltd. vs Commissioner Of Income Tax on 4 December, 1996

Ltd (supra) and Balaji Shipping (supra) with regard to interpreting "chartering" is that the receipts under slot chartering agreements has a direct nexus/inextricably linked to the main business of the enterprise of the operation of ships and therefore eligible for benefit under Article 9. The assessee under code sharing arrangements, books tickets in other airlines under a designated code specific to the assessee, so that the assessee holds itself out as providing service to destinations where it does not otherwise operate or in segments where it operates infrequently. The typical way in which the tickets are booked under code sharing arrangement is explained as below -
Supreme Court of India Cites 5 - Cited by 1462 - Full Document

Hireright Limited, London vs Acit, Circle 2(1)(1), Int. Tax, New ... on 6 September, 2023

Further the Hon'ble Bombay High Court in the case of Balaji Shipping (supra) also held that under slot chartering the arrangement is on a principle to principle basis i.e. the transportation of goods by third party vessels is done on behalf of operator of the ship. In assessee's case under the code sharing arrangements, the tickets are issued by the assessee for the entire journey including journey through third party airlines and accordingly the passengers are carried in third party aircrafts on behalf of the assessee. Therefore on this count also it is to be held that the operation of aircrafts in international traffic by the assessee would include code sharing arrangements.
Income Tax Appellate Tribunal - Delhi Cites 16 - Cited by 0 - G S Pannu - Full Document
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