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| The Tax Publishers2020 TaxPub(DT) 1495 (Mum-Trib) : (2020) 079 ITR (Trib) 0555 INCOME TAX ACT, 1961
Section 92C
Chapter X has been invoked to alter an expenditure, namely mobilisation and demobilisation charges paid for a qualifying ship, an item which has no bearing on the income as computed under Chapter XIIG and accordingly provisions of Chapter X have no application in computing income of assessee chargeable to tax as per Chapter XII-G. Accordingly, transfer pricing regulations were not applicable to assessee to the extent of operation carried by assessee through qualifying ships covered by Tonnage Tax Scheme.
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Transfer pricing - Applicability of chapter-X - mobilisation and demobilisation charges paid for a qualifying ship covered by Tonnage Tax Scheme -
TPO suggested transfer pricing adjustment in respect of interest on purchase price of two ships. Assessee contended that ships so purchased were qualifying ships as per tonnage tax provision, income from which had been offered and accepted accordingly. Held: Chapter X has been invoked to alter an expenditure, namely mobilisation and demobilisation charges paid for a qualifying ship, an item which has no bearing on the income as computed under Chapter XIIG and accordingly provisions of Chapter X have no application in computing income of assessee chargeable to tax as per Chapter XII-G. Accordingly, transfer pricing regulations were not applicable to assessee to the extent of operation carried by assessee through qualifying ships covered by Tonnage Tax Scheme.
REFERRED :
FAVOUR : in assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 92C
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