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2016 (2) TMI 1319 - AT - Income TaxLoss from Jeevan Suraksha Fund - Whether loss from Jeevan Suraksha fund can be set off against taxable income of the assessee corporation despite the fact that Jeevan Suraksha Fund is covered u/s 10(23AAB) whereby the income including the loss is not includible in the total income? - HELD THAT:- As noticed that while computing the taxable surplus, the negative reserves were ignored. On being show caused as to why the negative reserves should not be treated as income of the assessee, it was pointed out that the computation was in terms of the actuarial valuation carried out in accordance with Sec. 13, 15, 49 & 64V of the Insurance Act, 1938 and in terms of the IRDA regulations. It was also asserted that the prescribed methodology for valuation of the assets and determination of the liabilities was followed, on the basis of which, the actuarial valuation of surplus was arrived at for the purpose of taxation. The contentions of the assessee were not accepted by the Assessing Officer and accordingly he disallowed the adjustment of negative reserves amounting. As a common point between the parties that the decision of the Tribunal dt. 3.4.2013 [2013 (6) TMI 377 - ITAT MUMBAI] pertaining to Assessment Year 2009-10 on an identical issue continues to hold the field as it has not been altered by any higher authority. As a consequence, we find no error on the part of the CIT(A) in deleting the impugned addition. Ground of appeal no. 1.2 raised by the Revenue is also dismissed. Determination of Dividend Distribution Tax in terms of Sec. 115O - AO Noted that the assessee had distributed/paid to the Government of India on which Dividend Distribution Tax in terms of Sec. 115O of the Act was not levied - HELD THAT:- CIT(A) upheld the plea of the assessee following the decision of the Tribunal in the assessee‟s own case for Assessment Year 2006-07 - As a consequence, the stand of the assessee was allowed and the Assessing Officer was directed to delete the tax liability imposed u/s. 115O - As a consequence, the order of the CIT(A) is hereby affirmed and the Revenue fails on this aspect also.
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