https://www.taxtmi.com/caselaws?id=213028 The Tribunal upheld the Assessing Officer's decision on the apportionment of common expenses for non-shipping business, disallowing a portion of the appellant's claimed deduction. It emphasized that expenses under the tonnage tax scheme cannot be fully deducted when income is derived from both shipping and non-shipping activities. The Assessing Officer's recomputation of expenses for non-shipping business was supported by the CIT(A), who clarified the exclusion of direct expenses for shipping activities and a portion of common expenses related to shipping when determining deductions. The Tribunal directed reassessment of common costs allocation between shipping and non-shipping business on a reasonable basis, highlighting the error in equating 'reasonable basis' with 'proportionate basis.' It also instructed the Assessing Officer to reconsider the income computation for the subsequent assessment year in accordance with the correct legal provisions, ensuring fairness to the appellant. en-us Fri, 17 Feb 2012 00:00:00 +0530 Thu, 03 May 2012 16:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213028 The Tribunal upheld the Assessing Officer's decision on the apportionment of common expenses for non-shipping business, disallowing a portion of the appellant's claimed deduction. It emphasized that expenses under the tonnage tax scheme cannot be fully deducted when income is derived from both shipping and non-shipping activities. The Assessing Officer's recomputation of expenses for non-shipping business was supported by the CIT(A), who clarified the exclusion of direct expenses for shipping activities and a portion of common expenses related to shipping when determining deductions. The Tribunal directed reassessment of common costs allocation between shipping and non-shipping business on a reasonable basis, highlighting the error in equating 'reasonable basis' with 'proportionate basis.' It also instructed the Assessing Officer to reconsider the income computation for the subsequent assessment year in accordance with the correct legal provisions, ensuring fairness to the appellant. Case-Laws Income Tax Fri, 17 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213028