Applicability of Transfer pricing provisions to
tonnage tax entity
Facts:
Assessee
a vessel charterer was sustained with additions under Transfer pricing
provisions which was upheld by the DRP. On further appeal assessee's plea
was since they were covered under Tonnage tax scheme Transfer pricing
provisions would not be applicable to them.
Held
in favour of the assessee that once tonnage tax scheme is applicable there can
be no applicability of Transfer pricing provisions.
Applied:
Van Oord India Private Limited v. Dy. CIT in IT(TP)A No.
720/Mum/2015 (AY: 2010-11), dt. 11-11-2019 : 2019 TaxPub(DT) 8369 (Mum-Trib)
Trans Asian Shipping Services Pvt Ltd (SC) [Civil Appeal
No. 5869 and 5870 of 2016, dt. 5-7-2016] : 2016 TaxPub(DT) 3187 (SC)
Van Oord India Private Limited v. ACIT, [ITA
No. 7228/Mum/2012 (AY 2007-08), dt. 22-05-2019] : 2019 TaxPub(DT) 5334
(Mum-Trib)
Essar Ports Ltd v. DCIT (2020)
118 taxmann.com 433 (Mumbai Trib.)
Ed. Note:
Reference be made to Flash No. 122/2023/Sarat Chatterjee & Co.
VSP Pvt. Ltd. v ACIT/I.T.A. No. 101/Kol/2022 Assessment Year: 2017-18/Kolk
ITAT/Favour of the Assessee/29-03-2023 : 2023 TaxPub(DT) 2273 (Kol-Trib)
Case: Lewek Altair Shipping (P) Ltd. v. Dy. CIT 2023 TaxPub(DT) 4320
(Viz-Trib)