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2011 (9) TMI 1048 - AT - Income TaxConfirming taxation of dividend income - denying the exemption claimed by the Appellant u/s.10(34) - Held that:- Sec. 44 provides that computation of income of Insurance companies under various heads should be as per the First Schedule. But what we are considering is an income falling under Chapter-III which is to be excluded from total income. We are of the opinion that under the scheme of Act, no income falling within the various clauses of Sec.10 of the Act is to be compulsorily excluded in computing the total income of the assessee and the provision of Sec.44 in relation to computation of profits and gains of business of insurance do not include incomes otherwise exempt u/s.10 (34). Therefore the dividend income of ₹ 6,78,13,292 is treated as exempt u/s.10 (34) of the Act has to be excluded from the computation of total income of the assessee Disallowance in accordance with Rule 8D 2 Sec.14A - Held that:- We delete the entire disallowance made under 14A as no expenditure is incurred for earning exemption dividend income.
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