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2015 (8) TMI 76 - AT - Income TaxTaxability of profit on sale of investment - Held that:- After the deletion of rule 5(b) of the first schedule, profit on sale of in vestment in case of general insurance companies cannot be taxed under section 44 of the I.T Act. The case of the assessee is identical and therefore respectfully following the decision of Tribunal in assessee's own case ( 2010 (9) TMI 1051 - ITAT MUMBAI), we hold that profit on sale of investment in case of the assessee cannot be brought to tax in assessment year 2004-05. - Decided in favour of assessee. Deduction disallowed on account of amortization of debts securities - CIT(A) deleted the addition - Held that:- Decided in favour of assessee as relying on TATA AIG General Insurance vs. ACIT [2010 (10) TMI 764 - ITAT, Mumbai ] wherein held Expenditure, which is deductible for income tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may become expenditure on the happening of an event is not expenditure - In General Insurance Corporation of India vs. CIT (1999 -TMI - 5762 - SUPREME Court), the Supreme Court held that even if an item of debit is considered as an expenditure, it should further be such an expenditure contemplated in sections 30 to 43A and, therefore, unless there was a specific prohibition for such an allowance, the departmental authorities would not be justified in adding back the amount under rule 5(a) - Decided in favor of the assessee Deduction for pre-operative expenses - CIT(A) has dismissed this ground for the reason that assessee did not make this claim in the return and also did not file revised return - Held that:- If assessee is making a claim it will be within the power of Appellate Authorities to entertain such claim without making such claim in the return of income or without filing revised return. The case law of CIT vs. Pruthvi Brokers and Shareholders Pvt. Ltd , [2012 (7) TMI 158 - BOMBAY HIGH COURT ] as relied upon by the assessee is applicable to the facts of the case, therefore, in the interest of justice we restore this matter back to the file of AO to examine the claim of the assessee and decide the same as per law after giving the assessee a reasonable opportunity of hearing. - Decided in favor of the assessee for statistical purposes. Disallowance of unabsorbed depreciation and brought forward business loss to be carried forward for set off against the income in the subsequent years - Held that:- The due benefit of set off of brought forward depreciation and business loss has to be granted to the assessee and recording of such unabsorbed depreciation and business loss which is entitled to be carried forward is also necessary for getting such benefit in the subsequent year. Therefore, we restore this issue to the file of AO with a direction to determine such brought forward and carried forward unabsorbed depreciation and business loss as per law after giving the assessee a reasonable opportunity of hearing. - Decided in favor of the assessee for statistical purposes.
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