Exclusion from tonnage tax scheme - Section 115VZC - Income Tax - Ready Reckoner - Income Tax

Exclusion from tonnage tax scheme - Section 115VZC Company to be expelled from the tonnage tax scheme in case of abuse of the scheme Where a tonnage tax company is a party to any transaction or arrangement referred to in section 115VZB(1) , the Assessing Officer shall, by an order in writing, exclude such company from the tonnage tax scheme However that an opportunity shall be given by the Assessing Officer by serving a notice calling upon such company to show cause, on a date and time to be specified in the notice, why it should not be excluded from the tonnage tax scheme Further that no order under this sub-section shall be passed without the previous approval of the Principal Chief Commissioner or Chief Commissioner. Where an order has been passed under this section by the Assessing Officer excluding the tonnage tax company from the tonnage tax scheme, the option for tonnage tax scheme shall cease to be in force from the first day of the previous year in which the transaction or arrangement was entered into. Section not apply in case of bona fide transaction: Where the company shows to the satisfaction of the Assessing Officer that the transaction or arrangement was a bona fide commercial transaction and had not been entered into for the purpose of obtaining tax advantage under this Chapter.