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2014 (7) TMI 1158 - HC - Income TaxDisallowance u/s.14A - whether ITAR was correct in deleting the disallowance u/s.14A of the Act, despite the fact that the Hon'ble ITAT itself held the dividend income as exempt? - Held that:- We do not understand as to how the Assessing Officer can ignore Section 44 of the Income Tax Act, 1961 and the First Schedule. Time and again, the Court had clarified that the computation of profit and gain from the insurance business is to be made separately from any other business. That is why the provisions have been made in the Income Tax Act, 1961, particularly, bearing in mind the nature of the insurance business. In these circumstances, the fact that one question raised is common to the other appeals which have been admitted,we would have while dismissing this appeal imposed heavy costs on the Revenue and which costs would have been directed to be borne individually by the officer who had decided to file this appeal. We refrain from doing so simply because Mr. Suresh Kumar brought to our notice the fact that question (c) , which is termed as substantial question of law in this Appeal is common to the pending appeal and from a identical finding in relation to another insurance company. Hence,the appeal is admitted only on the above substantial question of law.
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