TMI Blog2017 (11) TMI 1859X X X X Extracts X X X X X X X X Extracts X X X X ..... of Insurance. The actual computation of profits and gains of insurance business will have to be computed in accordance with Rule 5 of the First Schedule. In the light of these special provisions coupled with non obstante clause the AO is not permitted to travel beyond these provisions. Section 14A contemplates an exception for deductions as allowable under the Act are those contained u/s 28 to 43B of the Act. Section 44 creates Special application of these provisions in the cases of insurance companies. We, therefore, agree with the assessee and delete the disallowance made by the AO which is based on the application of sec. 14A of the act as according to us, it is not permissible to the AO to travel beyond section 44 and First Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent of suo motto offered in the Return of Income following the Supreme Court decision in case of Goetze India Ltd. 284 ITR 323. l(c) The Ld.CIT(A) erred in confirming the disallowance to the extent of ₹ 41,38,913/- while adjudicating the ground of appeal No. 2 wherein the relief sought by the appellant was without prejudice to ground of appeal No.1 raised in regard to additional disallowance of ₹ 2,50,038/- u/s 14A made by the Ld. A.O. The appellant craves leave to add, alter, amend and/or modify all or any of the above grounds of appeal on or before the date of hearing. 2. During the course of hearing the Ld.Counsel for the assessee at the very outset stated that the issue under consideration is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputed in accordance with the rules contained in the First Schedule. 23. The above provision makes it very clear that section 44 applies notwithstanding anything to the contrary contained within the 'provisions of the income-tax Act relating to computation of income chargeable under different heads. We agree with the learned counsel that there is no requirement of head-wise bifurcation called for while computing the income u/s 44 of the Act in the case of a insurance company: 'The income of the business of insurance is essentially to be at the amount of the balance of profits disclosed by the annual accounts as furnished to the Controller of Insurance. The actual computation of profits and gains of insurance business will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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