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2014 (5) TMI 729 - AT - Income TaxBook adjustments u/s 115JB - Insurance company - Minimum alternate tax (MAT) - Reduction/exemption from gains on sale of investment – Held that:- Following ICICI LOMBARD GENERAL INSURANCE CO. LTD. Versus ASSTT COMMISSIONER OF INCOME TAX, RANGE-10(1), MUMBAI [2012 (11) TMI 587 - ITAT MUMBAI] - the amended provisions of Rule 5 of First Schedule makes it clear that the profits and gains shall be taken to be the profit before the tax and appropriately disclosed in the P&L Account prepared in accordance with the Insurance Act, 1938 or the Rule made thereunder or the provisions of IRDA Act - once the profit on sale of investment is required to be included in the P& L account in accordance with the provisions of Insurance Act, then as per the Rule 5 of First Schedule of the Act, no adjustment is required to be made on account of the amount of profits on sale of investment already included in the P&L Account - the Tribunal has been taking a consistent view on the issue in a series of decisions, thus, to maintain the rule of consistency and uniformity on this aspect, the matter has been decided in favour of Assessee. Addition on account of premium deficiency – Computation of book profits u/s 115JB of the Act – Held that:- Following ICICI LOMBARD GENERAL INSURANCE CO. LTD. Versus ASSTT COMMISSIONER OF INCOME TAX, RANGE-10(1), MUMBAI [2012 (11) TMI 587 - ITAT MUMBAI] - even if an Insurance Company does not disclose any matter in the Balance Sheet and P&L account because the same is not required to be disclosed by the Insurance Act shall not be treated non-disclosure of a true and fair view of the state of affairs of the company as the condition has been relaxed by sub sec 5 of sec 211 of the Companies Act - when the insurance companies, banking companies and electricity generation and distributions companies are treated in the same class as per the provisions of sec. 211 of the Companies Act in preparing their final accounts, then these companies cannot be treated differently for the purpose of sec. 115JB and accordingly, the provisions of sec. 115JB are not applicable in the case of the assessee – Decided in favour of Assessee.
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