Depreciation and gains relating to tonnage tax assets.

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....red to as the first tax year) shall be computed on the written down value of the qualifying ships as specified under sub-section (2). (2) The written down value of the block of assets, being ships or inland vessels, as the case may be, as on the first day of the first tax year, shall be divided in the ratio of the book written down value of the qualifying ships (herein referred to as the qualifyi....

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....the last day of the preceding tax year. (3) The block of qualifying assets as determined under sub-section (2) shall constitute a separate block of assets for the purposes of this Part. (4) Where an asset forming part of a block of,- (a) qualifying assets begins to be used for purposes other than the tonnage tax business, an appropriate portion of the written down value allocable to such asset....

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....down value allocable to such asset shall be reduced from the written down value of the block of other assets and shall be added to the block of qualifying asset as per the following formula:- E= F x G             I where,- E = the appropriate proportion of the written down value allocable to the asset which begins to be used for purposes of tonnage tax business....

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....n value referred to in sub-section (2) had been brought forward from the preceding tax year. (7) For the purposes of this section, the expression "book written down value" means the written down value as per books of accounts. (8) Any profits or gains arising from the transfer of a capital asset being an asset forming part of the block of qualifying assets shall be chargeable to income-tax as pe....