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2019 (6) TMI 1451 - AT - Income TaxApplicability of TP provisions of Chapter-X on Tonnage Tax Scheme of the Chapter XII-G - HELD THAT:- As relying on VAN OORD INDIA PRIVATE LIMITED, VERSUS ASSISTANT COMMISSIONER OF INCOME TAX - 5 (3) , MUMBAI [2019 (6) TMI 1238 - ITAT MUMBAI] Transfer pricing regulations are not applicable to the assessee to the extent of operation carried by assessee through qualifying ships which is covered by Tonnage Tax Scheme. Addition u/s 14A r.w.r. 8D - HELD THAT:- The assessee has not furnished any working of suo moto disallowance of section14A. The assessing officer issued show cause notice to the assessee as to why disallowance under section 14 A should not be made. The assessing officer recorded that no working under section 14A was furnished by assessee. The assessing officer invoked the provisions of Rule 8D and made disallowance of ₹ 158.17 Crore, which consist of ₹ 131.78 Crore on account of disallowance under Rule 8D2(ii) and ₹ 26.38 Crore under Rule 8D2(iii). On appeal the ld CIT(A) concurred with the finding of the assessing officer. Before us, the ld AR for the assessee submits that only those investment which yielded the exempt income should be considered form disallwawances under section 14A and relied on the decision of ACB India [2015 (4) TMI 224 - DELHI HIGH COURT] and in assessee Vireet Investment [2017 (6) TMI 1124 - ITAT DELHI] considering the fact that the ld AR for the assessee has raised this plea for the first time before the Tribunal, therefore, this ground of appeal is restored to the file of assessing officer to adjudicate this issue afresh after following the decisions of Delhi High Court in ACB India [2015 (4) TMI 224 - DELHI HIGH COURT] CIT Vs Interglobe Enterprises Ltd. [2016 (9) TMI 552 - DELHI HIGH COURT] and decision of Special Bench of Delhi Tribunal in assessee Vireet Investment [2017 (6) TMI 1124 - ITAT DELHI] and in accordance with law. Needless to order that before passing the order the assessing officer shall grant opportunity to the assessee. Since, we have restored this issue to the file of assessing officer, hence, the other alternative contentions raised by the assessee has become academic. In the result this ground of appeal is allowed. Disallowances u/s 14A while computing income under section 115JB - Assessee submits that only disallowances which are determined under section 14A can be adopted to the purpose of minimum alternative tax (MAT). Considering the facts that we have already restored the issue of disallowance under section 14A to the file of assessing officer, therefore, this issue is also restored to the file of assessing officer to decide it after determining the disallowance under section 14A. However, the assessing officer is directed to consider the submissions of ld. AR for the assessee as recorded above and pass the order in accordance with law.
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