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)