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2019 (4) TMI 959 - AT - Income TaxAccrual of income - Addition on account of accrued interest on loans, debentures and bonds - computation of taxable income earned from business of insurance u/s 44 - HELD THAT:- We are of the considered view that the assessee company had rightly not recognised an amount as income for the years as per its accounting policy and as per policy issued by the Insurance Regulatory Development Authority (IRDA). So, finding no illegality or perversity in the findings returned by the ld. CIT (A), ground no.1 is determined against the Revenue. Addition on account of expenses incurred on Guest House repairing - HELD THAT:- When the expenditure incurred by the assessee company for maintenance of company’s own guest houses, the same is covered u/s 30(a)(ii) of the Act. The repair expenses thereof would also be allowed as deduction as section 30(a)(ii) of the Act. So, we find no ground to interfere with the findings returned by the ld. CIT (A) and consequently ground no.2 is determined against the Revenue. Addition u/s 14A - assessment of insurance company - HELD THAT:- Hon’ble Supreme Court in Maxopp Investment Ltd. . [2018 (3) TMI 805 - SUPREME COURT OF INDIA] are not sustainable because of the fact that in case of insurance company, the assessee in this case, the income is to be computed as per provisions contained u/s 44 read with Rule 5 of First Schedule, coupled with non-obstante clause and in these circumstances, the AO is not empowered to travel beyond these provisions. Section 14A contemplates an exception for deduction as allowable under the Act are those contained under sections 228 to 438 of the Act and section 44 creates special application of these provisions in case of the insurance companies. AR for the assessee stated at Bar that the decision rendered by coordinate Bench of the Tribunal right from AYs 2000-01 to 2005-06 have not been challenged in the Hon’ble High Court. No illegality or perversity in the findings deletion made by the ld. CIT (A), ground no.3 is determined against the Revenue.
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