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2016 (10) TMI 1332 - HC - Income TaxIncome from other sources - surplus available in Share Holders Account - taxable at the normal corporate rate and holding that surplus from Share Holders Account was only part of income from insurance business arrived at after “combining” surplus available in Share Holders Account with the surplus available in Policy Holders Account and then taxing this 'net surplus' arrived at the rates specified u/s. 115B - Transfer from Share Holders Account to Policy Holder's Account and shown as part of 'surplus' in the “actuarial valuation” was only transfer of capital asset and not taxable u/s. 44 of the Act r.w. Rule 2 of the First Schedule” - HELD THAT:- As relying on ICICI PRUDENTIAL INSURANCE CO. LTD.[2015 (7) TMI 1259 - BOMBAY HIGH COURT] the proposed question does not give rise to any substantial question of law. Thus, not entertained. Addition made on account of Provision made in share holder's account for incremental liability towards employees benefit pertaining to earlier years - HELD THAT:- It is agreed position between the parties that the issue arising herein stands concluded in favour of the Respondent Assessee and against the Revenue by the decision of Apex Court in LIC vs. CIT [1963 (12) TMI 5 - SUPREME COURT] - In the above view, as the question stands concluded by the decision of the Apex Court in LIC (supra), the question as proposed does not give rise to any substantial question of law. Thus, not entertained. Whether Tribunal failed to appreciate that negative reserve has an impact of reducing the 'taxable surplus' as per Form1 and therefore corresponding adjustment for “negative reserve” need to be made to arrive at “taxable” surplus? - As relying on ICICI PRUDENTIAL INSURANCE CO. LTD.[2015 (7) TMI 1259 - BOMBAY HIGH COURT] it did not give rise to any substantial question of law. Thus, not entertained. Appeal admitted on substantial questions formulated at Question Nos.(2),(3) (8), (11) and (12).
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