TMI Blog2017 (3) TMI 1941X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2008-09, the Department has filed an appeal before the Hon ble Madras HELD THAT:- As respectfully following the decision of the Coordinate Benches of the Tribunal in assessment year 2008-09 2015 (3) TMI 226 - ITAT CHENNA ], we sustain the order of the ld. CIT(A), who has passed a well reasoned order by holding that the assessee is entitled for the benefit of tonnage tax scheme provided under Chapter XII C of the Act. Disallowance under section 14A read with Rule 8D as well as inclusion of the said disallowance to 115JB of the Act, the ld. CIT(A) followed the decision of the Tribunal for earlier assessment years, wherein, the decision of Mumbai Benches of the Tribunal in the case of Varun Shipping Corporation Ltd. v. ACIT [ 2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of the Tribunal in assessee s own case for the assessment year 2008-09 in I.T.A. No. 935/Mds/2013 vide order dated 13.06.2014 and prayed that the same should be followed for the assessment years under consideration. 3. On the other hand, the ld. DR has submitted that the decision of the Tribunal in assessee s own case for the assessment year 2006-07 holding that the assessee is eligible for tonnage tax scheme has been disputed before the Hon ble High Court of Madras and therefore, he has pleaded that the order of the ld. CIT(A) should be reversed for all the assessment years with regard to the issues raised in the appeals of the Revenue. 4. We have heard both sides, perused the materials available on record and gone through the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounds raised by the Revenue on this issue. 5. The next ground of appeal raised by the Revenue is that Commissioner of Income Tax (Appeals) erred in deleting the disallowance under section 14A of the Act. The Assessing Officer while completing the assessment made disallowance under section 14A of the Act. On appeal, the Commissioner of Income Tax (Appeals) deleted the disallowance made under section 14A of the Act holding that once assessee s income is computed as per tonnage tax scheme then further disallowance under section 14A cannot be made following the decision of the Mumbai Bench of the Tribunal in the case of Varun Shipping Co. Ltd. Vs. Addl.CIT (134 ITRD 339). The Revenue is in appeal before us. 6. Departmental Represent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputed as per the special provisions contained in Chapter XIIG, only the expenses incurred by the assessee for earning income of the said business are deemed to be allowed and nothing else. It, therefore, cannot be said that when the income of the assessee from the business of operating ships is computed as per the special provisions of Chapter XIIG, any expenditure other than the expenditure incurred for the purpose of the said business has been allowed and consequently no addition to income so computed can be made by way of disallowance u/s 14A on account of expenditure incurred by the assessee in relation to earning of exempt dividend income. We, therefore, find merit in the contention of the learned counsel for the assessee that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that the assessee is entitled for the benefit of tonnage tax scheme provided under Chapter XII C of the Act. Further, with regard to issue of disallowance under section 14A read with Rule 8D as well as inclusion of the said disallowance to 115JB of the Act, the ld. CIT(A) followed the decision of the Tribunal for earlier assessment years, wherein, the decision of Mumbai Benches of the Tribunal in the case of Varun Shipping Corporation Ltd. v. ACIT (supra) has been followed. Under the above facts and circumstances, we find no reason to interfere with the orders of the ld. CIT(A) and all the three grounds raised in the all the appeals of the Revenue are dismissed. 5. In the result, all the appeals filed by the Revenue are dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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