(1) Where a tonnage tax company is a party to any transaction or arrangement referred to in sub-section (1) of section 115VZB, the Assessing Officer shall, by an order in writing, exclude such company from the tonnage tax scheme:
Provided that an opportunity shall be given by the Assessing Officer by serving a notice calling upon such company to show cause, on a date and time to be specified in the notice, why it should not be excluded from the tonnage tax scheme:
Provided further that no order under this sub-section shall be passed without the previous approval of the 1 Principal Chief Commissioner or Chief Commissioner.
(2) The provisions of this section shall not apply where the company shows to the satisfaction of the Assessing Officer that the transaction or arrangement was a bona fide commercial transaction and had not been entered into for the purpose of obtaining tax advantage under this Chapter.
(3) Where an order has been passed under sub-section (1) by the Assessing Officer excluding the tonnage tax company from the tonnage tax scheme, the option for tonnage tax scheme shall cease to be in force from the first day of the previous year in which the transaction or arrangement was entered into.
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1. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013).
Section 115VT Transfer of profits to Tonnage Tax Reserve Account
Section 115VU Minimum training requirement for tonnage tax company
Section 115VV Limit for charter in of tonnage
Section 115VW Maintenance and audit of accounts
Section 115VX Determination of tonnage
Section 115VZA Effect of temporarily ceasing to operate qualifying ships