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2018 (12) TMI 1938 - AT - Income TaxAddition u/s 14A - section 14A application to insurance business, even when the assessee has claimed exempted income u/s 10 - AO was of the view that the income earned on investment made by a Life Insurance company is income earned on normal business and the same has to be assessed under the head ‘income from business or Profession’ - HELD THAT:- As relying on own case [2016 (11) TMI 598 - ITAT MUMBAI] we hereby accept the argument of learned Authorized Representative to the extent that in the present situation the provisions of s. 14A need not to apply while granting exempt ion to an income earned on sale of investment primarily because of the reason of the withdrawal or deletion of sub- r. 5(b) to First Schedule of s. 44 of IT Act. Once we have taken this view therefore the enhancement as proposed by learned CIT(A) is reversed and the directions in this regard are set aside. Disallowance on account of carry forward of losses from pension business - HELD THAT:- As relying on own case [2016 (11) TMI 598 - ITAT MUMBAI] the object of inserting section 10(23AAB) as per the Board Circular No. 762, dated 18/02/1998 was to enable the assessee to offer attractive terms to the contributors. Thus, the object of inserting section 10(23AAB) was not with a view to treat the pension fund like jeevan Suraksha Fund outside the purview of insurance business but to promote insurance business by exempting the income from such fund. Therefore, in the facts of the present case, the decision of the Income-tax Appellate Tribunal in holding that even after insertion of section 10(23AAB), the loss incurred from the insurance business under section 44 of the Income-tax Act, 1961 cannot be faulted. - Decided against revenue.
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