Fractional ship ownership does not bar tonnage tax scheme benefit where prior tribunal ruling had already settled eligibility.

Fractional ownership of a ship did not disqualify the assessee from claiming the tonnage tax scheme under Chapter XII-G of the Income-tax Act, 1961. The Tribunal followed its earlier coordinate bench ruling in the assessee's own case for a prior assessment year and applied the same interpretation of eligibility. On that basis, it upheld the Commissioner (Appeals)'s view granting the benefit and rejected the Revenue's challenge. The operative principle is that fractional ownership, by itself, does not defeat entitlement to the statutory tonnage tax regime where the earlier decision in the same matter has already settled the issue.

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Issues: Whether the assessee, being a fractional owner of a ship, was entitled to claim the benefit of the tonnage tax scheme under Chapter XII-G of the Income-tax Act, 1961.

Analysis: The assessee's eligibility for the tonnage tax scheme had already been decided in its own case for an earlier assessment year. The Tribunal followed that coordinate bench decision and accepted that fractional ownership did not disentitle the assessee from the statutory benefit. On that basis, the view taken by the Commissioner (Appeals) granting the benefit was upheld.

Conclusion: The assessee was eligible for the tonnage tax scheme and the Revenue's challenge failed.

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