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2018 (12) TMI 1939 - AT - Income TaxApplicability of section 14A on insurance business - Addition u/s 14A r.w.r 8D - As argued applicant being insurance company and his total income is computed as per the provisions of section 44 provisions of section 14A read with rule 8D do not apply - HELD THAT:- As decided in own case [2016 (11) TMI 598 - ITAT MUMBAI] dismiss this ground of appeal of the revenue and direct the AO to delete the addition as held that Tribunal was justify in holding that provisions of section 14A of the Act did not apply to insurance business, even when the assessee has claimed exempted income u/s 10 of the I.T. Act - Decided against revenue. Disallowance of carry forward of losses from pension business - HELD THAT:- As decided in own case [2016 (11) TMI 598 - ITAT MUMBAI] assessee followed the IRDA Recommendations and accordingly prepared the actuarial valuation report including the surplus or deficit. The Rule 2 prescribes only actual valuation in accordance with Insurance Act 1938. Looking at the issue, we noticed that the computation made by the assessee is in accordance with Rule 2 of the Insurance Act 1938, according to which only AO can base his computation. The Revenue has not contested that the working of actuarial surplus / deficit is not in accordance with Rule 2 of 1st Schedule. Accordingly we are of the view that the CIT(A) has rightly deleted the addition and we confirmed the same. Disallowance of deduction/exemption claimed by the assessee u/s. 10(34) of the Act in respect of dividend income - HELD THAT:- As decided in own case [2016 (11) TMI 598 - ITAT MUMBAI] the exemption available to any other assessee under any clauses of section 10 is also available to a person carrying on non-life insurance business subject to the fulfilment of the conditions, if any, under a particular clause of section 10 under which exemption is sought. It needs to be emphasized that it is not the case of the Assessing Officer that the assessee had failed to fulfil the condition which attached to the provisions of the relevant clauses of section 10 in respect of which the exemption was allowed. This of course is apart from clause (38) of section 10 where the Assessing Officer had rejected the claim for exemption in the original order of assessment under section 143(3). The Assessing Officer above all was bound by the communication of the CBDT. Having followed that in the order under section 143(3) he could not have taken a different view while purporting to reopen the assessment. Having applied his mind specifically to the issue an having taken a view on the basis of the communication noted earlier, the act of reopening the assessment would have to be regarded as a mere change of opinion which has also not been based on any tangible - Decided against revenue.
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