TaxTMI 
TaxTMI 
2022 (5) TMI 827
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....7-18. Since, facts are identical and issues are common, for the sake of convenience, these appeals are heard together and are being disposed off, by this consolidated order. 2. The Revenue has more or less filed common grounds of appeal for all these assessment years, therefore, for the sake of brevity, grounds of appeal filed for the assessment year 2013- 14 are reproduced as under:- "1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous on facts of the Case and in law. 2. The Ld. CIT(A) erred in deleting the addition of Rs.7,02,44,725/- made by the assessing officer towards Shipping income. 2.1. The Ld.CIT(A) ought to have consider following reasons while allowing the Tonnage Tax Schem....
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....ex Court, then same needs to be condoned in view of specific problem faced by the public on account of Covid-19 pandemic. 4. The learned AR, on the other hand, fairly agreed that delay may be condoned in the interest of justice. 5. Having heard both sides and considered reasons given by the learned DR, we find that the Hon'ble Supreme Court in suo motu Writ Petition No.3 of 2020, has extended limitation applicable to all proceedings in respect of courts and tribunals across the country on account of spread of Covid-19 infections w.e.f. 15.03.2020, till further orders and said general exemption has been extended from time to time. We further noted that delay noticed by the Registry pertains to the period of general exemption provided b....
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....n case for earlier years deleted additions made by the Assessing Officer and allowed benefit of tonnage tax as claimed by the assessee. Aggrieved by the learned CIT(A) order, the Revenue is in appeal before us. 7. The learned DR submitted that although the assessee has got approval u/s.115VP of the Income Tax Act, 1961, to claim benefit of tonnage tax, but mere obtaining approval would not preclude the Assessing Officer from examining whether other conditions laid down under Chapter XII-G are satisfied or not, while examining claim of the assessee. The learned DR further submitted that there is no dispute that the assessee had obtained permission u/s.115VP of the Act to claim the benefit. However, the Assessing Officer had made very cate....
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....tained approval u/s.115VP of the Income Tax Act, 1961, from the prescribed authority for claiming benefit of tonnage tax. In fact, the Assessing Officer never disputed these facts. The Assessing Officer has denied benefit of tonnage tax only for the reason that the assessee is only a fractional owner and holding 20% interest in qualifying ship M.V.Gem of Ennore and further, operation of the ship was done by M/s. West Asia Maritime Ltd. Therefore, the Assessing Officer was of the opinion that the assessee is not entitled for benefit of tonnage tax as per provisions of section 115VC of the Income Tax Act, 1961. 10. We have carefully considered reasons given by the Assessing Officer to deny benefit of tonnage tax as claimed by the assessee ....
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....duced as under:- "The normal activities of operating a seagoing ship are to carry passengers, carry cargo, to do towage, salvage or other marine assistance or transport in connection with other services of kind necessarily provided at sea. The restriction has to be looked into in the above background. The restriction is that the vessel is not a qualifying ship for the purpose of section 115VD if the main purpose for which it is used is the provision of goods or services of a kind normally provided on land. The law does not say that the ship should always do its voyage between international ports. The law does not say anything about the distance to be covered by ship in a single voyage. The law presumes that the benefit of tonnage t....
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....oal from Indian ports to Indian ports, the ship was performing exactly the core function of a ship of carrying bulk cargo from port to port. Therefore, the ship operated by the assessee was a qualifying ship under section 115VD and the assessee was entitled for the benefit of tonnage tax scheme provided under Chapter XII-C." 11. As regards observations of the Assessing Officer with regard to operation of the ship by M/s. West Asia Maritime Ltd., we find that as per provisions of section 115VH of the Income Tax Act, 1961, where a qualifying ship is operated by two or more companies by way of joint interest in the ship or by way of an agreement for the use of ship and their respective shares are definite and ascertainable, the tonnage inco....