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2017 (6) TMI 1257 - ITAT MUMBAIActuarial valuation / actuarial surplus - taxability u/s 44 - computation of income - income of insurance business - transfer from Share Holders Account to Policy Holder’s Account - ‘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) - additions towards negative reserve - Held that:- The issue raised in ground (i) to (vii) above is squarely covered in favour of the assessee by the decision of the ITAT in assessee’s own case for assessment year 2011-2012 [2017 (3) TMI 1696 - ITAT MUMBAI] as held that in 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. Assessing Officer has no power to modify the account after actuarial valuation is done. Decided in favor of assessee.
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