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2015 (3) TMI 751 - ITAT MUMBAIDetermination of income - whether appellant-company is covered under Chapter XII-G, of the 'Act' for determination of its taxable income? - whether appellant-company's various incomes, viz., core ship ping, incidental shipping, interest and dividend are from business of operation of qualified ships? - treatment of reasonable allocation of common costs as per provisions of section 115VJ of Act - Held that:- The issues involved in grounds of the assessee's appeal for the assessment year 2006-07 are similar to the issues involved in assessee's appeal for the assessment year 2005-06 except that the claim of the assessee for allocation of administrative expenses against incidental activities is also not allowed in the assessment year 2006-07 whereas the same was allowed by the Assessing Officer himself in the assessment year 2005-06. Learned counsel for the assessee has submitted that only this aspect of the matter may be restored to the file of the Assessing Officer for deciding the same afresh after taking into consideration the assessment made for the assessment year 2005-06 on similar issue and after verifying of the relevant facts. As the learned Departmental representative has also not raised any objection in this regard, we restore this limited issue to the file of the Assessing Officer for deciding the same afresh. As regards the claim of the assessee for allocation of common costs towards interest and dividend income, we follow our conclusion drawn in the assessment year 2005-06 and decide this issue against the assessee - Decided partly in favour of assessee for statistical purposes. Re-adjusting the turnover by reducing ₹ 73.52 crores from 'core shipping - Held that:- Respectfully following the Tribunal's order dated July 29, 2011 (Shipping Corporation of India Ltd. v. Addl. CIT [2011 (7) TMI 588 - ITAT, Mumbai]) in the assessee's own case for the assessment year 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 Assessing Officer 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), learned counsel for the assessee has submitted that neither the Assessing Officer nor the learned Commissioner of Income-tax (Appeals) has examined the relevant details placed and urged that the matter may be sent back to the Assessing Officer for deciding the same afresh after verifying the said detail. As the learned Departmental representative has no objection in this regard, the issue relating to inclusion or exclusion of item Nos. 3 and 6 is restored to the file of the Assessing Officer for deciding the same afresh after verifying the said details.- Decided partly in favour of assessee. Readjustment in turnover of core shipping - Assessing Officer has committed the arithmetic totalling errors of ₹ 41.62 lakhs in the assessment order - Held that:- assessee has submitted that certain factual mistakes committed by the Assessing Officer in computing the turnover of the core shipping activities were pointed out by the assessee before the learned Commissioner of Income-tax (Appeals) and the direction was given by the learned Commissioner of Income-tax (Appeals) vide his impugned order to the Assessing Officer to verify and correct the said mistakes. He has submitted that the Assessing Officer, however, has not complied with the direction of the learned Commissioner of Income-tax (Appeals) and a fresh direction may therefore be given to the Assessing Officer to correct the mistakes pointed out by the assessee after verification. We accordingly direct the Assessing Officer to rectify the mistakes, if any, as pointed out by the assessee in working of turnover of core shopping activities after verification - Decided in favour of assessee.
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