Applicability of TP provisions to Tonnage Tax Scheme

Facts :

Additions were proposed under TP on the assessee for transactions with AE and with SDT transactions. DRP upheld the same. On appeal assessee took the plea that since they were covered under Tonnnage tax scheme (TTS) TP provisions will not apply to them -

Held in favour of the assessee, since they were covered under Tonnage tax scheme no TP provisions will apply to them.

Applied :

Van Oord India Pvt. Ltd. v. DCIT, Range-5(3), Mumbai in [IT(TP) A No. 720/Mum/2015 dt. 11-11-2019] : 2019 TaxPub(DT) 8369 (Mum-Trib)

Ed. Note : Similar argument was raised in Tolani Shipping Co. Ltd. (Mumbai-ITAT), dated 31-3-2023 though on merits the TP additions were dropped with this point becoming otiose.

Case: Sarat Chatterjee & Co. v. ACIT 2023 TaxPub(DT) 2273 (Kol-Trib)