2013 (9) TMI 1287 - AT - Income Tax

Summary

Issues involved:
The issue involves the eligibility of the assessee for tonnage tax scheme u/s 115VC(c) and the interpretation of Chapter-XII G of the Income Tax Act, 1961.

Eligibility for Tonnage Tax Scheme:
The assessee, engaged in various businesses, filed its return for AY 2009-10, declaring income and Short Term Capital Gain. The Assessing Officer disallowed u/s 14A and rejected the claim for shipping income u/s 115VG, stating the assessee, owning only a part of the ship, is not eligible for tonnage scheme. The CIT(Appeals) disagreed, allowing the appeal and deleting the additions. The Revenue appealed to the Tribunal, arguing the assessee's fractional ownership disqualifies them from the tonnage tax scheme. The assessee's representative cited a previous Tribunal decision supporting eligibility. The Tribunal, considering the previous decision, upheld the CIT(Appeals)'s findings, dismissing the Revenue's appeal.

Conclusion:
The Tribunal, based on precedent and the interpretation of relevant provisions, upheld the eligibility of the assessee for the tonnage tax scheme, as decided by the CIT(Appeals), dismissing the Revenue's appeal.