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2018 (3) TMI 1891 - AT - Income TaxAddition u/s 69B - HELD THAT:- Difference in the books of accounts of the assessee and the statement is only due to the fact that the buyers have failed to take the delivery of the shares and therefore the provision of section 69B is not attracted. Therefore, the order of CIT(A) is set aside and AO is directed to delete the addition. The ground No.1 is allowed. Profit on sale of investments - taxed under the head income from capital gain and income from business - HELD THAT:- In order to maintain consistency with the decision of the Tribunal, we hold that the profit on sale of investments cannot be taxed as the amendment by the Finance Act is effective from A.Y. 2011-12 onwards and not prior to that. The grounds no 1 and 2 raised by the revenue are dismissed. Disallowance u/s 14A read with rule 8D - HELD THAT:- We find that it has been consistently held that, provision of section 14A is not applicable in the cases of Insurance company which are governed by section 44, because it is non obstante provision wherein the income is to be computed as per P&L account prepared under the Insurance Act 1938. Section 14A contemplates exception for deduction allowable under the act, whereas section 44 creates special application of provision of computation of profit as per the Insurance Act. Thus, no disallowance u/s 14A can be made. Premium paid on purchase of government securities was allowable as revenue expenditure on amortization - HELD THAT:- As relying on assessee own case [2015 (2) TMI 1323 - ITAT MUMBAI] we hold that such an amortization claimed by the assessee as revenue expenditure is allowable. Accordingly, assessee’s ground no.5 is treated as allowed. Disallowance u/s 40(a)(ia) - HELD THAT:- CIT(A) allowed the appeal of the assessee by observing that identical issue was decided in the earlier years and same was followed in the current year also. The case is also covered by the decision of Tribunal in the case of General Insurance Corporation of India [2009 (2) TMI 234 - ITAT BOMBAY-G] in which it has been held that the provision qua deduction of TDS at source are not applicable on reinsurance commission and accordingly the order under section 201(1) r.w.s. 201(1A) was set aside - Decided in favour of the assessee. Premium paid by the assessee on purchase of government securities was allowable as revenue expenditure on amortization. MAT applicability u/s 115JB - HELD THAT:- Accounts of the insurance company are prepared in accordance with the Insurance Act, 1938 as has been provided under section 44A read with First Schedule and therefore, the provisions of section 115JB do not apply to the assessee’s case. Accordingly, the ground raised by the Revenue is dismissed.
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