Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 605 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Assessee is covered by Tonnage Tax Scheme where Shipping Business Income is computed on the basis of deemed income under Chapter XIIG and no expense has been claimed nor allowed while computing TONNAGE TAX INCOME as BUSINESS INCOME of shipping business - HELD THAT:- Disallowance u/s 14A is concerned, we find that this issue has already been adjudicated by the Tribunal in assessee’s own case for various years [2019 (2) TMI 1815 - ITAT MUMBAI] . The co-ordinate bench, relying upon the decisions of this Tribunal in Varun Shipping Co. Ltd. [2011 (11) TMI 370 - ITAT MUMBAI] , Tag Offshore Ltd. [2014 (12) TMI 224 - ITAT MUMBAI] , Raj Shipping Agencies Ltd. [2013 (12) TMI 995 - ITAT MUMBAI] held that once the department has allowed the option to the assessee under Clause (i) of sub-section (3) of Section 115VP, the disallowance u/s 14A would not be attracted. Respectfully following the same, taking the same view, we delete the disallowance u/s 14A as sustained by Ld. CIT(A). Consequentially, the adjustment of the same while computing Book Profits u/s 115JB would not be arise. Revised statement of income - claiming that INCOME FROM HOUSE PROPERTY on account of rent received from Managing Director should be considered as shipping business income and cannot be taxed separately as Income from House Property u/s.22 - interest income includes tax free income - interest on certain Bank fixed deposits should be considered as business income - interest on staff loan and interest on delayed payment should be considered as business income - bad debts recovered should be considered as business income - sale of old magazines should be considered as business income - assessee is seeking exclusion of all the above stated items while computing book profits u/s 115JB - HELD THAT:- Lower authorities refused to admit the assessee’s revised computation of income in terms of ratio of Hon’ble Apex Court rendered in Goetz India Ltd. V/s CIT [2006 (3) TMI 75 - SUPREME COURT] which mandate the assessee to claim deduction by filing a revised return only. No findings on merits have been rendered by lower authorities on any of these issues. It is settled law that there is no bar on the appellate authorities to entertain the same. Further, equity demands that correct income of the assessee be ascertained. Therefore, without delving much deeper, keeping all the issues open, we direct Ld.AO to consider all these claims and remit the matter back to the file of Ld. AO. The Ld. AO is directed to adjudicate the same in the light of the submissions made by the assessee that the aforesaid items would constitute business income for the assessee and secondly, these arises out of shipping business being carried out by the assessee. These grounds stand allowed for statistical purposes.
|