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2017 (3) TMI 1696 - AT - Income TaxActuarial valuation - taxability u/s 44 - computation of income - transfer from Share Holders Account to Policy Holder’s Account - Tribunal holding that ‘surplus’ available both in Policy Holders Account and Share Holders Account is to be consolidated and only ‘net surplus’ is to be taxed as income from Insurance Business - taxing income of assessee arising from activity unconnected with insurance business (consequent set off loss) - Held that:- We find that the Hon'ble Bombay High Court in the case of ICICI Prudential Insurance Co. Ltd. [2015 (7) TMI 972 - BOMBAY HIGH COURT] has held that “where assessee was carrying on life insurance business and Tribunal following a decision of Supreme Court, while determining assessee’s income under section 44, had taken into consideration total surplus as arrived at by actuarial valuation and further held that income from shareholders account was also to be taxed as a part of life insurance business, there was no substantial question of law arising for consideration”. Reference was made to the decision in LIC of India vs. CIT [1963 (12) TMI 5 - SUPREME COURT] wherein held that the Assessing Officer has no power to modify the account after actuarial valuation is done. Income of assessee arising from activity unconnected with insurance business - determining actuarial valuation surplus from insurance business u/s 44 - Held that:-(i) amount set apart by insurance company towards solvency margin as per the direction given by IRDA is to be excluded while computing actuarial valuation surplus, and (ii) pension fund like Jeevan Suraksha Fund would continue to be governed by provisions of section 44 irrespective of the fact that income from such fund is exempted, or not and, therefore, even after insertion of section 10(23AAB), loss incurred from pension fund like Jeevan Suraksha Fund has to be excluded while determining actuarial valuation surplus from insurance business u/s 44 of the Act. See case of LIFE INSURANCE CORPORATION OF INDIA LTD. [2011 (8) TMI 47 - BOMBAY HIGH COURT] - revenue appeal dismissed.
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