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2015 (7) TMI 1259 - HC - Income TaxTaxable surplus - modification of account after Actuarial valuation - whether negative reserve has an impact of reducing th 'taxable surplus' as per Form-I and therefore corresponding adjustment for “negative reserve” need to be made to arrive at “taxable surplus”? - Held that:- Apex Court in LIC Vs. CIT [1963 (12) TMI 5 - SUPREME Court] has held that the Assessing Officer has no power to modify the account after Actuarial valuation is done. It is also pertinent to note that for the Assessment Year 200708, the Assessing Officer had raised an identical issue during the assessment proceedings and thereafter by the assessment order dated 30 December 2009 held that no adjustment of the Actuarial valuation is to be done by following the decision of the Apex Court in LIC (supra). Therefore we find no substantial question of law arising for our consideration. Income on shareholders' account taxed as income from other sources - whether income earned on shareholders' account is not an income which represents income on account of Life Insurance Business? - Held that:- In terms of Section 44 of the Act, such income has to be taxed in accordance with First Schedule as provided therein. None of the authorities under the Act nor even before us is it urged that the assessee is carrying on separate business other than life insurance business. Accordingly, the impugned order holding that the income from shareholders' account is also to be taxed as a part of life insurance business cannot be found fault with in view of the clear mandate of Section 44 of the Act. Accordingly Question No.8 also does not raise any substantial question of law Appeals admitted on Question Nos. 1, 2, 3, 4 and 7.
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