COMMISSIONER OF INCOME TAX, KOCHI vs TRANS ASIAN SHIPPING SERVICES (P) LTD.

The Supreme Court ruled that under Section 115VA of the Income Tax Act, 1961, shipping companies have the option to compute their income from operating qualifying ships according to the special provisions in Chapter XIIG, despite the general provisions in Sections 28 to 43C. The Court clarified that once this option is exercised, the income is deemed to be profits and gains chargeable to tax under the head 'Profits and Gains of Business or Profession'. The appeals were decided in favor of the shipping companies, affirming their right to choose the computation method.