https://www.taxtmi.com/caselaws?id=376245 Notional foreign exchange gain arising on restatement of a loan taken to acquire ships was treated as part of shipping income under Chapter XII-G of the Income-tax Act, 1961. The court noted that tonnage tax is a special regime for income from operating qualifying ships, and that loan-related exchange variation was closely connected, interlinked and integral to that core business activity. It also found no rational basis to distinguish between realised exchange gain and notional restatement gain in this context. Accordingly, the Revenue's challenge to exclusion of the exchange gain from tonnage tax treatment failed, and no substantial question of law arose. en-us Mon, 25 Feb 2019 00:00:00 +0530 Tue, 05 Mar 2019 10:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=376245 Notional foreign exchange gain arising on restatement of a loan taken to acquire ships was treated as part of shipping income under Chapter XII-G of the Income-tax Act, 1961. The court noted that tonnage tax is a special regime for income from operating qualifying ships, and that loan-related exchange variation was closely connected, interlinked and integral to that core business activity. It also found no rational basis to distinguish between realised exchange gain and notional restatement gain in this context. Accordingly, the Revenue's challenge to exclusion of the exchange gain from tonnage tax treatment failed, and no substantial question of law arose. Case-Laws Income Tax Mon, 25 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=376245