TMI Blog2022 (5) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... Disallowance of deduction of administrative expenses against the income from other sources - HELD THAT:- We find that identical issue of disallowance of administrative expenses against interest income under the head income from other sources has been held against the assessee in [ 2015 (3) TMI 751 - ITAT MUMBAI] . Granting credit u/s 115JAA for the taxes paid in earlier years - HELD THAT:- Before us, the parties agreed that payment of the taxes and allowing of credit thereon is matter for verification by the Assessing Officer and therefore, accordingly the issue is retored back to the file of the Assessing Officer for verification and if the assessee is eligible for credit of taxes in year under consideration for the taxes paid under MAT in earlier years, the claim of the assessee shall be considered in accordance with law. The ground No. 3 is accordingly allowed for statistical purposes. - ITA No. 30/MUM/2019 - - - Dated:- 13-5-2022 - Shri Om Prakash Kant (Accountant Member) And Shri Rahul Chaudhary (Judicial Member) For the Assessee : Mr. Vinay Deshmane, AR For the Revenue : Mr. Vijay Shankar, CIT-DR ORDER PER OM PRAKASH KANT, AM This ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of section 28 to 43C of the Act i.e. profit and gains of business or profession. In section 115V-I of the Act, income from operation of the qualified ships is defined as relevant shipping income , which consists of profit from core activities and profit from incidental activities . The profit from incidental activities in excess of 0.25% turnover from core activities has been excluded from the relevant shipping income and made liable for taxable under other provisions of the Act. Any other income from non-qualified ships or other business is also to be computed in accordance with other provisions of the Act. 3.1 For the year under consideration, the assessee filed return of income on 26.11.2014 declaring total income of Rs.164,54,14,530/- under normal provisions of the Act and book profit of Rs.255,65,29,795/-. The return of income filed by the assessee was selected for scrutiny and statutory notices under the Act were issued and complied with. In view of international transactions carried out by the assessee with its Associated Enterprises (AEs), matter was referred to the Transfer Pricing Officer (Ld. TPO) for determination of Arm s Length Price (ALP) of the internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s own case for A.Y. 2007-08, we uphold the action of the authorities below in reducing the profit on sale of ships and fixed ships from the turnover of core shipping. The action of the authorities below in reducing the excess provision written back and sundry credit balances written back, however, is set aside and the A.O. is directed to include the said income in the turnover of core shipping. As regards item No. 3 (sundry receipts from core shipping) and item No. 6 (reimbursement from managed vessels), the Id. Counsel for the assessee has submitted that neither the A.O. nor the ld. CIT(A) has examined the relevant details placed at 157 of the paper book and urged that the matter may be sent back to the A.O. for deciding the same afresh after verifying the said detail. As the Id. D.R. has no objection in this regard, the issue relating to inclusion or exclusion of item No. 3 6 is restored to the file of the A.O. for deciding the same afresh after verifying the said details. Ground No. 5 of the assessee s appeal for AY 2006-07 is thus partly allowed. 6.2 We find that the Tribunal (supra) has directed to include the income from excess provision written back in the turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idend income earned on investment made in the shares of other company and having regard to all the facts of the case, we are of the view that the same cannot be said to have earned by the assessee by carrying on any separate business activity other than the tonnage tax business as envisaged in section 115 VJ of the Act. The said income was chargeable to tax in the hands of the assessee under the head income from other sources as rightly held by the authorities below and even the assessee itself had originally offered the said income under the head income from other sources . As regards the decision of Hon'ble Bombay High Court in the case of Punit Commercial Ltd. (supra) cited by the ld. Counsel for the assessee, it is observed that the same was rendered in the context of section 80HHC(3) (a) of the Act and the ratio of the said decision therefore cannot be applied in the present case which involves the issue in the context of section 115 VJ of the Act. In the case of Indo Swiss Jewels Ltd. and Other (supra) cited by the ld. Counsel for the assessee, the facts involved were different from the present case inasmuch as inter-corporate deposits were made by the assessee from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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