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2017 (10) TMI 1604 - AT - Income TaxTonnage tax claim - assessee is engaged in shipping business and financing - Whether assessee is eligible for tonnage tax scheme as the assessee is only a fractional owner of the ship and thus satisfy the provisions of section 115VC(c)? - HELD THAT:- As relying on assessee own case [2013 (9) TMI 1287 - ITAT CHENNAI] since the ship was not operated by the assessee itself but by West Asia Maritime Limited, so it cannot be taken as entitled for the aforesaid benefit of tonnage tax. This argument in our view, does not merit acceptance. After going through the relevant provision, it nowhere comes out that in case of jointed owned ship by two or more companies, the same has to be operated specifically by each of the co-owners/assessees. Therefore, this ground also fails - Decided in favour of assessee. Renewal of tonnage tax under section 115VR - submission of the assessee that the agreement entered into by the assessee on 25.09.2001 with co-owners to entrust the job to M/s. West Asia Maritime Ltd. to operate the ship still was in force and that the ship was on lease with M/s. Poompuhar Shipping Corporation to operate the same - As per assessee stress was on owning a “qualifying ship” and that it does not envisage to be a owner of fully owning a qualifying ship - HELD THAT:- By following the above order of the Tribuna lin the assessee’s own case for the assessment year 2005-06 [2011 (5) TMI 250 - ITAT, CHENNAI]. ld. CIT(A) directed the Assessing Officer to grant renewal of tonnage tax scheme as applied by the assessee. The above order of the Tribunal has not been reverted or reversed by any higher Court. Accordingly, we confirm the order passed by the ld. CIT(A), subject to the final verdict of the Hon’ble Madras High Court as has been contended by the ld. DR that the Department has filed further appeal against the order of the Tribunal. - Decided against revenue.
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