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2014 (1) TMI 1316 - AT - Income TaxQualification u/s 115VD and 115VC of the Act – Tonnage tax on qualifying ship – Qualifying Company – Held that:- The decision in Assistant Commissioner of Income-tax Versus West Asia Maritime Ltd. [2011 (7) TMI 1017 - ITAT CHENNAI] followed for the purpose of qualification of tonnage tax benefit - the ship was operated by the assessee for transporting thermal coal from one location to another location within the country, is a qualifying ship u/s 115VD and the assessee is entitled for the benefit of tonnage tax scheme provided under Chapter XII-C - The place where the board of directors of the company made their decision would not be India just because the two of the directors were in India - Attendant circumstances as to whether the said persons were residents of India or residing abroad or whether functioning from an office abroad were all required to be seen before coming to a decision regarding the place of effective management – the aspect requires a fresh look by the Assessing Officer for verifying the actual and effective place where the decisions were taken by the board of directions with regard to the affairs of the assessee company - Therefore, while holding that the ship was indeed a qualifying ship for enjoying the TTS, the issue as to whether assessee qualified under section 115VC of the Act, remitted back to the Assessing Officer for fresh consideration – Decided partly in favour of Revenue. Deletion made u/s 14A of the Act – Held that:- As the disallowance under section 14A is concerned, there is no doubt that Rule 8D applied only from A.Y.2008-09 as decided in Varun Shipping Co. Ltd. Versus Additional Commissioner of Income-tax - 5(3), Mumbai [2011 (11) TMI 370 - ITAT MUMBAI] – the matter is already set aside the issue as to whether assessee was eligible for TTS, back to the Assessing Officer for consideration afresh - thus, it will be appropriate if the Assessing Officer once again consider the question of disallowance if any, to be made under section 14A of the Act for all these years, afresh. Addition to be made in book profits u/s 115JB of the Act - Provision for loan on revision of foreign currency loans – Held that:- It was included by the assessee as a part of establishment and other expenses, Assessing Officer had simply taken a presumption that it was a provision - Assessing Officer had not gone into the accounts to see whether the claim was made by the assessee through its Profit and Loss appropriation account or, its P&L account. Ld. CIT(A) had given relief to the assessee for a reason that, assessee was eligible for TTS under Chapter–XIIG of the Act - CIT(A) had relied on Sec.115VO, which exempted a tonnage tax company from the application of Sec.115JB of the Act – the matter is already set aside the issue as to whether assessee was eligible for TTS, back to the Assessing Officer for consideration afresh – thus, the order set aside and the matter remitted back for the fresh adjudication – Decided partly in favour of Revenue.
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