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2014 (1) TMI 1030 - AT - Income TaxProfits on sale of investments - Held that:- The taxability of income of insurance companies under the head "income from business and profession" as governed by provisions of section 44 read with first schedule to the Income tax Act, does not extend to taxability of profits on sale of investments for the assessment years under consideration - Decided in favour of assessee. Interest on tax free bonds and dividend income - Held that:- Decision in General Insurance Corporation of India, Mumbai Versus The Deputy Commissioner of Income Tax, 1(3) Mumbai & Anr. [2011 (12) TMI 70 - BOMBAY HIGH COURT] followed - As per clarification brought by CBDT - The exemption u/s 10 is available to any other assessee under any clauses of Section 10 is also available to a person carrying on non-life insurance business subject to the fulfillment of the conditions, if any, under a particular clause of Section 10 under which exemption is sought - Decided in favour of assessee. Non-applicability of provision of Section 115AB - Held that:- The accounts of appellant are prepared in accordance with the Insurance Act and not in accordance with Schedule VI of the Companies Act - As per the proviso to sub- section 1 to section 211 - The provisions of section 211 shall not be applicable for an insurance or banking company - The proviso to sub-section 2 of this section relating to the profit and loss account also specifies that schedules VI part II shall not be applicable to any insurance or banking company - The basic premise of applicability of section 115JB does not stand and consequently this section does not apply to appellant company - Decided in favour of assessee.
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