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2023 (7) TMI 685 - AT - Income TaxTP Adjustment - Tonnage Tax Scheme Applicable - whether the TP provisions are applicable to the assessee company covered under the Special Provisions relating to income of shipping company as prescribed under Chapter XII-G of the Act? - HELD THAT:- In the instant case, the assessee has applied for registration for approval U/s. 115VP(3) of the Act allowing the company to exercise option under the Tonnage Tax Scheme. JCIT, Kakinada Range vide F.No. Tonnage Tax/2013-14, dated 27/06/2013 granted approval for a period of ten years effective from the AY 2014-15 from the date on which such option has been exercised by the assessee. As per the submissions of the Ld. AR, the assessee has exercised its option for the first time for the AY 2017-18. We also find that the proviso to section 115VB of the Act does not cover the charter of ships to others. Since the assessee has exercised its option under Tonnage Tax Scheme as per the provisions of Chapter XII-G of the Act, the provisions of Chapter-X cannot be applied in the computation of total income by the assessee. We therefore direct the TPO / AO to delete the additions made on account of Transfer Pricing adjustment. Appeal of assessee allowed.
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