Exclusion from tonnage tax scheme triggers cessation of option when company engages in abusive arrangements. Exclusion from the tonnage tax regime applies where a company participates in abusive transactions; the Assessing Officer must issue a written exclusion order after serving a show-cause notice and obtaining prior approval from the Principal Chief Commissioner or Chief Commissioner. Such exclusion causes the tonnage tax option to cease from the first day of the previous year in which the transaction occurred, but the provision does not apply if the company satisfies the Assessing Officer that the transaction was a bona fide commercial transaction not entered into to obtain tax advantage.