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2017 (9) TMI 1994 - AT - Income TaxLoss from Jeevan Suraksha Fund - income includes loss thus the loss form Jeevan Suraksha Fund can be set off against taxable income of the assessee corporation despite the fact that Jeevan Suraksha is covered u/s 10(23AAB) - Whether non-obstante clause in section 44 of the Act is not extended to section 10(23)AAB? - HELD THAT:- Hon'ble High Court [2011 (8) TMI 47 - BOMBAY HIGH COURT] clearly held that the object of insert in section 10(23AAB), as per Board Circular No.762 dated 18/02/1998, was to enable the assessee to offer attractive terms to the contributors. The order of the Tribunal with respect to section 10(23AAB) that the loss incurred from the pension fund like Jeevan Suraksha Fund has to be excluded while determining the accrual surplus from the insurance business u/s 44 of the Act cannot be faulted, resultantly, the issue was decided in favour of the assessee. We don’t find any infirmity in the conclusion of the First Appellate Authority. Thus, the impugned grounds are dismissed. Dividend income of the assessee hold as exempt u/s 10(34) - As identical issued is covered by the decision in the case of ICICI Prudential Insurance Co. Ltd. [2012 (11) TMI 13 - ITAT MUMBAI] therefore, we find no infirmity in the conclusion of the Ld. Commissioner of Income Tax (Appeal), resultantly, this ground of the Revenue is also fails. Whether negative reserves has an impact of reducing the taxable surplus, as per form-1 therefore, corresponding adjustment for negative reserves need to be made to arrive a taxable surplus? - HELD THAT:- Issue decided in favour of assessee as relying on own case High Court vide order dated [2015 (9) TMI 1718 - BOMBAY HIGH COURT]. Assessing Officer had no power to modify its accounts after Actuarial valuation is done. Addition made on account of interim bonus paid - Whether no deduction on account of interim bonus is required to be made from the total surplus as per the regulation of IDRA, the provisions of Act are not applicable in the case of the assessee? - HELD THAT:- If section 28 of the Life Insurance Corporation Act, 1956 is analyzed, with respect to surplus from life insurance business and its utilization, it is clear that 95% of such surplus or such higher percentage thereof, as the central government may approve shall be allocated to or reserve for life insurance policy holders of the corporation and after meeting the liability of corporation, if any, which may arise u/s 9, the reminder shall be paid to the Central Government or if the Central Government so direct, shall be utilized for such purposes and in such manner as the government may determine. Considering the clear language of the section, we direct the Assessing Officer to examine the factual matrix/utilization of the surplus and decide in accordance with law. The assessee be given opportunity to substantiate its claim. Thus, this ground is allowed for statistical purposes. Applicability of provisions of section 115-O r.w.s 115Q - HELD THAT:- The Tribunal in a later decision dated 10/07/2013 [2013 (7) TMI 1204 - ITAT MUMBAI] followed the decision of Assessment Year 2006-07 - No contrary decision was brought to our notice by the Revenue, thus, we find no infirmity, in the order of the First Appellate Authority, on this issue also, therefore, this ground is dismissed, resultantly, the appeal of the Revenue is partly allowed for statistical purposes. Addition made on account of income from shareholders funds credited directly to the shareholders account - HELD THAT:- As decided in assessee own case [2017 (3) TMI 1904 - ITAT MUMBAI] payment made by the assessee to the Central Government could not be treated as dividend within the ambit of definition clause 2(22) of the Act, that provisions of section 115-O of the Act were not applicable, that assessee could not be declared as assessee in default u/s.115 Q of the Act. In our opinion, in the case relied upon by the AR of the assessee, question of taxability of particular items of income under the head income from other sources was not before the Tribunal. Therefore, upholding the order of the FAA we decide Ground of appeal against the assessee.
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