Dismissing the appeal of the revenue the Court held that the Tribunal was justified in holding that, notional gains on account of restatement of foreign exchange liabilities on loan taken for purchase of ships would be considered to be a part of core activity of shipping company entitled to benefit of Chapter XII-G of the Act. (AY. 2008-09)
PCIT v. M. Pallonji Shipping (P.) Ltd. (2019) 262 Taxman 326/ 177 DTR 115/ (2020) 314 CTR 827 (Bom.)(HC)
S. 115V-I : Shipping business – Shipping income -Tonnage tax scheme-Forex rate fluctuation gains -Gains on account of exchange rate variations of foreign loan taken for purchase of ships being connected to assessee’s core activities of operating qualifying ships would be entitled to benefit under Chapter XII-G.