TaxTMI 
TaxTMI 
2013 (1) TMI 211
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....T(A)-II against the assessment order passed u/s 143(3) of the Act for the very same assessment year. Since both the appeals were heard together, they are being disposed of by this common order, for the sake of convenience. 2. In the appeal filed by the revenue, the solitary issue urged relates to the decision of the Ld. CIT(A) in holding that the assessee is entitled to opt for tonnage tax scheme. In the appeal filed by the assessee, the only issue urged relates to the applicability of provisions of sec. 50C of the Act to the transaction of sale of the property effected by the assessee. 3. We shall first take up the appeal of the Revenue. The facts relating to the said issue are stated in brief. The assessee is a public limited compan....
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....for the following two reasons:- (a) The Memorandum and Articles of Association contains 73 objectives out of which business as shippers, shipping agents etc. is only one of the several objectives and is not the main objective. (b) The ship charter receipts (turnover) forms only a small portion out of the gross receipts(turnover) of the company from various divisions. 4. The assessee challenged the said decision by filing a Writ Petition before the Hon'ble Kerala High Court. The assessee also filed appeal before the Ld CIT(A) in the regular course. The Jurisdictional High Court held that the order of the Addl. CIT to the extent it holds that the business of operating ships is not a main object o....
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....ip Charter income is Rs. 49,57,91,037/- and out of Rs. 3,26,32,12,101/- for the year ended 31-3-2003, the ship charter income is Rs. 30,84,67,989/-. As per the details produced before me it is seen that the income from shipping business and income from the qualifying ship forms only small portion out of the gross income of the company. After considering all the facts and evidences produced by the assessee, it is seen that it cannot be considered that the main objective of the company is to carry on the business of operating ships and the assessee's application for exercising the option for tonnage tax scheme in accordance with the provisions of section 115VP(1) of the Income-tax Act, 1961 cannot be entertained and is rejected". 6. Howeve....
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.... positions for various years vis-à-vis shipping business emerges as under:- Divisionwise profit % 31/3/2005 % 31/3/2008 % 31/3/2007 Clearing and forwarding 49 243179615 43.8 205673589 57 221602150 Work contract 9.2 46348698 10.6 44831657 10 38747486 Shipping division 52 262895284 51.9 218687504 48 185045126 upto August 2006 Others -10 -51240127 -11.3 -47744289 -15 -57056621 TOTAL 100 501183470 100 421448421 100 388338141 31/3/2005 31/3/2006 31/3/2007 Net Profit 609251502 428493669 836779831 Less: Other Exceptional ....
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....gain as per the provisions of sec. 50C of the Act. 10. The facts relating to the same are stated in brief. In the return of income, the assessee declared long term capital gain of Rs. 2,53,33,605/-. The Assessing Officer noticed that one of the assets sold by the assessee was a property consisting of land measuring 23980 sq. ft and a building thereon, which was located at Race Course Road, Coimbatore. The said property was sold for a consideration of Rs. 4,82,20,200/-. It was noticed that the value determined by the Stamp authorities for the purposes of stamp duty was Rs. 5,67,63,700/-. Accordingly, the Assessing Officer, by invoking the provisions of sec. 50C, took the sale consideration as Rs.5,67,63,700/-, being the value fixed by the....
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....vocable gift deed duly witnessed by independent witnesses and acknowledged by the donee. The record does not show any such information either by the seller or by the buyer. No such material or corroborative evidence is furnished either before the Assessing Officer or at the time of appellate proceedings. Therefore, the difference cannot be taken as gift. Hence in my view the Assessing Officer has rightly taken the difference as capital gain of the appellant and has assessed it correctly in the hands of the appellant. Hence this ground stands dismissed". 11. We have heard the parties on this issue. We do not find any infirmity in the decision of the Ld. CIT(A) for the following reasons: (i) Sec. 50C is a deeming prov....