No Deduction for Interest Paid on FCCD under Tonnage Tax Scheme: ITAT

The Income Tax Appellate Tribunal (ITAT) ruled that interest paid on Foreign Currency Convertible Debentures (FCCD) is not deductible under the Tonnage Tax Scheme. The decision clarifies the non-deductibility of such interest expenses, impacting companies engaged in shipping and maritime activities. The ruling underscores the specific exclusions within the Tonnage Tax Scheme, guiding companies on compliant financial practices and tax reporting.