(4)Where any amount credited to the Tonnage Tax Reserve Account under sub-section (1),-(a)has been utilised for any purpose other than that referred to in clause (a) or clause (b) of sub-section (3); or(b)has not been utilised for the purpose specified in clause (a) of sub-section (3); or(c)has been utilised for the purpose of acquiring a new ship as specified in clause (a) of sub-section (3), but such ship is sold or otherwise transferred, other than in any scheme of demerger by the company to any person at any time before the expiry of three years from the end of the previous year in which it was acquired, an amount which bears the same proportion to the total relevant shipping income of the year in which such reserve was created, as the amount out of such reserve so utilised or not utilised bears to the total reserve created during that year under sub-section (1) shall be taxable under the other provisions of this Act-(i)in a case referred to in clause (a), in the year in which the amount was so utilised; or(ii)in a case referred to in clause (b), in the year immediately following the period of eight years specified in sub-section (3); or(iii)in a case referred to in clause (c), in the year in which the sale or transfer took place:Provided that the income so taxable under the other provisions of this Act shall be reduced by the proportionate tonnage income charged to tax in the year of creation of such reserves.
