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2013 (4) TMI 391 - AT - Income TaxRecruitment fees - Whether treated as the income not incidental for computing its shipping income under Tonnage Tax Scheme u/s 115 VI read with Rule 11-R of the Income Tax Rules - assessee in the present case is a company which is engaged in the business of shipping operations - Held that:- Prior to A.Y. 2005-06 the benefits of shipping company were provided in section 33AC of the Act by way of deduction of an amount not exceeding 50% of profits derived from the business of operation of ships. As rightly submitted by the ld. counsel for the assessee, the scope of benefits provided u/s 33AC of the Act thus was limited to the profits derived from the operation of ships in which the recruitment fees arising from incidental activities was not covered. Chapter XII-G, however, has extended this scope from A.Y. 2005-06 which in addition to the profits from core activities from operating qualifying ships also includes profits from incidental activities. Keeping in view this extended scope of benefits available now under Chapter XII-G inserted in the statute w.e.f. 1-4-2005, the assessee has claimed the benefit in respect of recruitment fees which was earlier not available u/s 33AC of the Act, the scope of which was limited only to profits derived from the operations of ships. Therefore, delete the addition made by the A.O. and confirmed by the ld. CIT(A) on account of recruitment fees. In favour of assessee. Disallowance of expenses claimed against miscellaneous income - Held that:- As rightly submitted by the D.R., the details of the expenses claimed by the assessee have not been furnished by the assessee either before the authorities below or even before the Tribunal and in the absence of the same, agreeing with the contention of the D.R. that there is no case made out by the assessee for the assessee to justify any more opportunity to be given to the assessee at this stage to support and substantiate its claim on this issue. Thus uphold the impugned order of the ld. CIT(A) confirming the disallowance made by the A.O. on this issue. Against assessee.
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