Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 1469 - ITAT BANGALOREAssessment of income from life insurance business - surplus arising from “shareholder account” as separate income and not as income arising from life insurance business - assessee contended that merely because surplus from shareholders account and policy holders’ account is disclosed separately in the financial statements, the income in shareholders’ account should not be treated as distinct income separated from life insurance business - HELD THAT:- We noticed that the ld CIT(A) has followed the decision rendered by the coordinate bench in the assessee’s own case relating to asst. year 2009-10 [2017 (5) TMI 1769 - ITAT BA NGALORE]and also decision rendered in the case of PNB Met Life [2016 (7) TMI 12 - ITAT BANGALORE]. Since the ld CIT(A has followed the decision rendered by Tribunal on this issue, we do not find any necessity to interfere with the order passed by him. Claim of set off of loss computed under the Pension account against business income - HELD THAT:- We noticed that the coordinate bench has examined an identical issue and decided the same in favour of the assessee by following the decision rendered by Bombay High Court in the case of LIC of India Ltd. [2011 (8) TMI 47 - BOMBAY HIGH COURT] held as rightly contended by the ld counsel for the assessee it would be the case when income is computed under the normal provisions of the Act. However, in the case of Assessee’s engaged in life insurance business Income has to be computed as laid down u/s 44 of the Act. Section 44 of the Act starts with a non obstante clause and overrides the provisions of the Act relating to computation of income under the various heads of income including income under the head profit and gains of business of insurance. Therefore, we are of the view that stand taken by the DRP cannot be accepted. We, therefore, direct that loss from pension fund which is exempt u/s10(23AAB) be excluded while determining surplus as per actuarial valuation surplus u/s 44 of the Act. Ground raised by the assessee is allowed.
|