9911796707
TMI Blog2015 (3) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax (Appeals) on this issue is upheld - Decided against Revenue. - ITA.No.935/Mds/2013 - - - Dated:- 13-6-2014 - SHRI N.S. SAINI AND SHRI CHALLA NAGENDRA PRASAD, JJ. For the Appellant : Mr. Anirudh Rai, CIT For the Respondent : Mr. G.Stanly, Advocate ORDER Per: Challa Nagendra Prasad: This appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals)-III, Chennai dated 22.01.2013 for the assessment year 2008-09. 2. The first issue in the appeal of the Revenue is that Commissioner of Income Tax (Appeals) erred in holding that assessee is entitled for benefit of tonnage tax scheme provided under Chapter XII C of the Act. 3. Counsel for the assessee submits that this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ITD 339). The Revenue is in appeal before us. 6. Departmental Representative supports the order of the Assessing Officer and the counsel for the assessee relies on the order of the Commissioner of Income Tax (Appeals) and the decision of the Mumbai Bench of this Tribunal in the case of Varun Shipping Co.Ltd. (supra). 7. Heard both sides. Perused orders of lower authorities and the decision of this Tribunal relied on. The Mumbai Bench of this Tribunal considered this issue in the in the case of Varun Shipping Co.Ltd. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 income of the assessee from the business of operating ships having been computed in accordance with the provisions of Chapter XIIG, only the expenses incurred for the said business are deemed to have been allowed and no addition to such income can be made by way of disallowance u/s 14A on account of any expenditure incurred in relation to earning of exempt dividend income. In our opinion, if at all the assessee has claimed any such expenditure in c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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