2011 (6) TMI 959

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....earned CIT(A) erred on facts and in law in directing the Assessing Officer to consider the rig as qualifying ship u/s 115VD of the Incometax Act, 1961 and, therefore, allowing the assessee to opt for Tonnage Tax Scheme ("TTS" for short). It is mentioned that he failed to consider the fact that the ship of the assessee was an "offshore Installation" and that registration under Merchant Shipping Act, 1958, as a ship was not a relevant consideration. On the other hand, the assessee has disputed the disallowance of ₹ 37,66,957/- made u/s 14A of the Act read with Rule 8D of the I.T. Rules, 1962. 2. The learned CIT-DR drew our attention towards the decision of "C" Bench of Delhi Tribunal in the case of the assessee, (2010) 35 SOT 285 (Delh....

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....that the Assessing Officer did not conduct any further inquiry apparently because he was satisfied with the explanation given. We cannot understand Gee Vee Enterprises (supra) to mean that that even when the Assessing Officer is satisfied with the explanation given by the assessee, he must make a further investigation so as to unearth something against the assessee. 21. That apart, the Tribunal has noted that there was no material at all before the Commissioner to take a different view of the matter particularly since the Assessing Officer had dropped the objection. It is true that if there was material before the Commissioner to have the issue reconsidered, he could have done so but it was noted by the Tribunal that there was no material....

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.... year is based upon the findings recorded in assessment year 2006- 07, which have not been considered by the Tribunal in its decision referred to above. Further, the learned CIT(A) has followed the aforesaid decision of the Tribunal. Thus, no distinguishable feature has been made by any of the lower authorities in respect of the facts of the two years. The question whether this ship is a factory ship has not been examined by any of the lower authorities. Therefore, the facts on record remain the same. In such a circumstance, we are left with no option but to follow the earlier decision of the division bench. Accordingly, we uphold the order of the learned CIT(A). 4. Coming to the cross objection of the assessee, it is seen that the learned....