TaxTMI 
TaxTMI 
2017 (3) TMI 1941
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....ars 2009-10, 10-11, 11-12 and 2012-13. The Revenue has raised following common grounds in all the appeals: (i) The ld. CIT(A) has erred in holding that the assessee is entitled for the benefit of tonnage tax scheme provided under Chapter XII C of the Income Tax Act, 1961. (ii) The ld. CIT(A) has erred in holding that the assessee is eligible for tonnage tax scheme and further disallowance under section 14A cannot be made. (iii) The ld. CIT(A) has erred in deleting the addition of 14A for the purpose of 115JB disallowances holding that section 14A is not acceptable to shipping companies. 2. At the time of hearing, the ld. Counsel for the assessee has submitted that the common issues raised in the appeals of the ....
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....p operated by the assessee M.V.Gem of Ennore transporting thermal coal from one location to another location within the country is a qualifying ship under section 115VD of the Income Tax Act, 1961 and the assessee is entitled for the benefit of tonnage tax scheme provided under section XII C of the Act. 4. We have perused the above order of the Third Member and find that the issue is decided in favour of the assessee holding that ship operated by the assessee M.V.Gem of Ennore transporting thermal coal from one location to another location within the country is a qualifying ship under section 115VD of the Income Tax Act, 1961 and the assessee is entitled for the benefit of tonnage tax scheme provided under section XII C of the Act.....
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....the assessee is mainly engaged in the business of operation of ships and its income from the said business was declared and assessed as per the special provisions contained in Chapter XIIG which lay down tonnage tax scheme. As per the provisions of section 115VA contained in Chapter XIIG, the income from the business of operating qualifying ships can be computed at the option of the assessee in accordance with the provisions of Chapter XIIG and once this option is exercised by the assessee, the income so computed shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and Gains of business or profession" notwithstanding anything to the contrary contained in section 28 to 43C. It, therefore, fol....
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....nce on account of such expenditure u/s 14A can be made. We, therefore, delete the disallowance made by the AO u/s 14A and confirmed by the learned CIT(Appeals) and allow ground no.1 of the assessee's appeal." 8. Respectfully following the above decision, we uphold the order of the Commissioner of Income Tax (Appeals) on this issue and reject the grounds of appeal raised by the Revenue." 4.1 As contended by the ld. DR that against the order of the Tribunal for the assessment year 2006-07, as has been followed in the assessment year 2008-09, the Department has filed an appeal before the Hon'ble Madras, cannot be a ground to take a different view. Thus, respectfully following the decision of the Coordinate Benches of the Tribunal, ....