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The Tax Publishers2020 TaxPub(DT) 1642 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A Section 115VP
Provisions of section 14A would not apply to assessee opting for tonnage tax scheme.
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Disallowance under section 14A - Expenditure against exempt income - Scope for disallowance in case assessee engaged in shipping business had exercised option for Tonnage Tax scheme in accordance with section 115VP(1) with effect form assessment year 2005-06 -
Assessee-company engaged in shipping business had exercised option for tonnage Tax Scheme in accordance with section 115VP(1) with effect from assessment year 2005-06. AO for the year under consideration determined assessee's income after sole disallowance under section 14A as against returned income. Held: Once department had allowed option to assessee under clause (i) of sub-section (3) of section 115VP, disallowance under section 14A would not get attracted.
Followed:Varun Shipping Co. Ltd. (2012) 17 ITR (Trib) 587 (Mum-Trib) : 2012 TaxPub(DT) 1035 (Mum-Trib), Tag Offshore Ltd. 49 Taxmann.com 209 (Mum-Trib) and Raj Shipping Agencies Ltd. (2013) 38 Taxmann.com 345 (Mum-Trib) : 2013 TaxPub(DT) 1816 (Mum-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2011-12 & 2012-13
INCOME TAX ACT, 1961
Section 250
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