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TMI Blog2022 (5) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... had considered an identical issue and by following decision of the Tribunal in assessee s own case for earlier assessment years, had held that the assessee is entitled for benefit of tonnage tax. We further noted that the Tribunal had also considered case of other co-owners of qualifying ship M.V.Gem of Ennore and after considering relevant facts has rightly held that the assessee has rightly claimed benefit of tonnage tax as per provisions of section 115VC of the Income Tax Act, 1961. As regards observations of the Assessing Officer with regard to operation of the ship by M/s. West Asia Maritime Ltd., we find that as per provisions of section 115VH where a qualifying ship is operated by two or more companies by way of joint interest in the ship or by way of an agreement for the use of ship and their respective shares are definite and ascertainable, the tonnage income of each such company shall be an amount equal to a share of income proportionate to its share of that interest. In this case, the claim of the learned AR for the assessee was that the assessee had claimed benefit of tonnage tax, as per definite and ascertainable share of the assessee in terms of agreement with oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ship only and management and operation of the ship is done by another co - owner. 2.6. The operation of the ship was done by West Asia Maritime Ltd and the assessee company is sharing profits without actual operation. 3. At the outset, we find that there is a delay of 12 days in ITA Nos. 83, 85 to 87/Chny/2021 and 169 days in ITA No. 84/Chny/2021 filed by the revenue. During the course of hearing, when defect was brought to the notice of learned DR present for the Revenue submitted that delay in filing of appeals is mainly due to lockdown imposed by the Govt. on account of spread of Covid-19 infections and in view of Hon ble Supreme Court suo motu Writ Petition No.3 of 2020, if the period of delay is covered within the period specified in the order of the Apex Court, then same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic. 4. The learned AR, on the other hand, fairly agreed that delay may be condoned in the interest of justice. 5. Having heard both sides and considered reasons given by the learned DR, we find that the Hon ble Supreme Court in suo motu Writ Petition No.3 of 2020, has extended limitation applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR further submitted that there is no dispute that the assessee had obtained permission u/s.115VP of the Act to claim the benefit. However, the Assessing Officer had made very categorical observation with regard to eligibility of the assessee to claim benefit as per which the assessee does not operate qualifying ship and further, operation of the ship was carried out by M/s. West Asia Maritime Ltd. and therefore, the Assessing Officer has rightly rejected tonnage tax and their order should be upheld. 8. The learned A.R for the assessee, on the other hand, supporting order of the learned CIT(A) submitted that issue involved in the present appeals filed by the Revenue is recurring issue and the Assessing Officer right from assessment year 2005-06 onwards rejected claim of the assessee towards tonnage tax as per provisions of section 115VC of the Income Tax Act, 1961. The learned AR further submitted that the issue had been examined by the Tribunal in assessee s own case right from assessment year 2005-06 and after considering relevant facts has rightly held that the assessee is entitled for benefit of tonnage tax, as per provisions of section 115VC of the Act, even though the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant facts has rightly held that the assessee has rightly claimed benefit of tonnage tax as per provisions of section 115VC of the Income Tax Act, 1961. The relevant findings of the Tribunal in the case of ACIT Vs. West Asia Maritime Ltd. (2013) 33 taxmann.com 660 (Chennai) as a Third Member, for assessment year 2006-07 are reproduced as under:- The normal activities of operating a seagoing ship are to carry passengers, carry cargo, to do towage, salvage or other marine assistance or transport in connection with other services of kind necessarily provided at sea. The restriction has to be looked into in the above background. The restriction is that the vessel is not a qualifying ship for the purpose of section 115VD if the main purpose for which it is used is the provision of goods or services of a kind normally provided on land. The law does not say that the ship should always do its voyage between international ports. The law does not say anything about the distance to be covered by ship in a single voyage. The law presumes that the benefit of tonnage tax scheme is available to all seagoing ships satisfying the condition where it is operated between Indian ports or between In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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