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2013 (1) TMI 211 - AT - Income TaxAssessee's entitlement to opt for tonnage tax scheme - revenue appeal - Held that:- The assessee company has filed the application in Form No. 65 before the Addl. CIT on 03-12-2004 opting for tonnage tax scheme u/s. 115VP(1). Hence, it would be correct and justifiable only to consider the data that were available as on that date in order to ascertain whether the main object of the company is to carry on the business of operating ships or not. However, CIT(A) has considered the financial accounts relating to 31-03-2005, 31-03-2006 and 31-03-2007 and held that the main objective of the assessee company is to carry on the business of operating ships. As stated earlier, the assessee company filed its application on 03-12-2004, on which date the data pertaining to 31.3.2005, 31.3.2006 and 31.3.2007 would not be available before the Addl. CIT. Hence,CIT(A) is not correct in considering data pertaining to the subsequent periods - the present issue needs to be examined afresh at the end of CIT(A) - in favour of revenue for for statistical purposes Applicability of provisions of sec. 50C to the transaction of sale of the property effected by the assessee - assessee appeal - Held that:- Sec. 50C is a deeming provision and hence, the question of gift of property does not arise. There is no finding that the assessee has transferred the asset for inadequate consideration, which may possibly result in gift. On the contrary, sec. 50C only contemplates only substituting the sale consideration. Thus even if for a moment, the contention of gift is accepted in the present case, the question that arises is what was actually gifted. The entire property has been sold for a consideration of Rs.4.82 crores as against the stamp duty value of Rs.5.67 crores. Hence the difference between both the amounts has to be treated as constructive of receipt of money in the form of cash by the assessee and constructive payment of money in the form of gift to the Trust. Since the transaction of gift is considered as taken place in the form of gift, the provision of sec. 47(iii) shall not apply to it - against assessee.
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