TMI Blog2021 (3) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, interest accrued on the corpus fund is required to be added in the corpus fund only. Accordingly, the appeal of the Revenue is dismissed. Disallowance u/s 14A - HELD THAT:- Once the assessee's income is to be computed u/s. 44 which relates to all insurance business which is a non obstante clause, therefore disallowance of Section 14A cannot be made.- Decided against revenue. - I.T.A. Nos. 366 & 367/DEL/2018 - - - Dated:- 17-3-2021 - Amit Shukla , Member ( J ) And O. P. Kant , Member ( A ) For the Appellant : Satpal Gulati , CIT-DR For the Respondent : None ORDER Per Amit Shukla, JM The aforesaid appeal has been filed by the Revenue against the impugned order dated 11.09.2017, passed by Ld. Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income earned by the assessee right from Assessment Years 2008-09 to 2012-13 as under: Assessment Year 2008-09 2009-10 2010-11 2011-12 2012-13 Opening Balance 8649.09 9277.94 10305.60 10423.50 10327.22 Receipts (from govt.) 0.00 152.53 117.18 3537.88 5029.87 Debit adjustment (272.98) 0.00 (962.20) (4350.21) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India and such income was earned out of the amount received from the Central Government and State Government in the corpus fund for specified purposes by the Government of India. Accordingly, he deleted the addition of ₹ 8,62,47,181/-. 11. Before us, the ld. DR vehemently stated that the appellant's activities in respect of investments out of corpus fund vis a vis other investments are same for which common expenses have been debited in the Profit and Loss Account. Further, the assessee has utilized the corpus funds, ownership/right to use, vests with the assessee. The ld. DR further stated that the ld. CIT(A) has simply referred to the submissions of the assessee and has deleted the additions without any speaking order. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 116 ITR 60, Dalmia Cement Ltd. 237 ITR 617, etc. All these judicial decisions have been discussed elaborately by the ld. CIT(A) in his order. We, therefore, do not find any error or infirmity in the order of the ld. CIT(A). Accordingly, Ground No. 1 of the Revenue is dismissed. 6. Thus, respectfully following the earlier year precedent, we hold that amount of ₹ 8,75,513/- cannot be treated as income of the assessee as it is a diversion of income by overriding title in view of letter from the Government of India, Ministry of Agriculture wherein it has been clearly stated that the corpus fund belongs to the Central and State Government and the interest thereto also belongs to the Government, and therefore, interest accrued on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y disallowance u/s. 14A read with Rule 8D; and secondly, the Assessing Officer has presumed dividend income u/s. 14A and there is no objective analysis of the apparent expenses vis- -vis the account. One very important fact and legal point noted by the ld. CIT(A) is that the assessee-company income is to be computed in terms of Section 44 of the Act which is non obstante clause and once the income has computed u/s. 14A there is no applicability of Section 14A as it has been overlooked by the specific provision of Section 44 of the Act. He further relied upon the appellate order for the Assessment Years 2012-13 and 2013-14, this issue has been deleted. 10. We find that this Tribunal after noting the earlier orders of the Tribunal wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 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. 24. Section 14A contemplates an exception for deductions as allowable under the Act are those contained u/s. 28 to 43B of the Act. Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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