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2016 (4) TMI 125 - AT - Income TaxSale of investment - taxability in hands of assessee - Held that:- The profits on sale of investment in the years before us, which are year prior to the years with effect from which prospective amendment is made, are not taxable in the hands of the assessee. The taxability of income of insurance companies under the head ‘income from business and profession’ as governed by provisions of section 44 read with first schedule to the Income Tax Act, does not extend to taxability of profits on sale of investments – So far as the assessment years before us are concerned. We direct the AO to exclude profit on sale of investments from income of the assessee as not liable to be taxed. See Bajaj Allianz General Insurance Company Limited Vs Addl CIT [2009 (8) TMI 810 - ITAT PUNE-A] - Decided in favour of assessee Allowability of club expenses - TDS liability - Held that:- The payment of club fees was with a view to enable the assessee to improve its business relations and prospects. Therefore the payment of club fees was business expenditure not falling u/s. 40(a)(v) of the Act. See Otis Elevator Company (India) Limited Versus Commissioner Of Income-Tax [1991 (4) TMI 53 - BOMBAY High Court]. Hon’ble High Court of Delhi in the case of CIT Vs Samtel Color Ltd ( 2009 (1) TMI 26 - DELHI HIGH COURT ) has held that admission fee paid to Corporate Membership was an expenditure incurred wholly and exclusively for the purposes of business and not towards capital account as it only facilitated the smooth and efficient running of a business enterprise and did not add to the profit earning apparatus of a business enterprise - Decided in favour of assessee MAT applicability - whether the provisions of Sec. 115JB of the Act are applicable to the assessee or not? - Held that:- We have perused the orders of the Co-ordinate Bench for the assessment year 2007-08 we find that the Co-ordinate Bench following the decision in the case of Krung Thai Bank PCL Vs DIT [2010 (9) TMI 18 - ITAT, MUMBAI ] directed the AO to exempt the assessee from the applicability of provisions of Sec. 115JB of the Act.- Decided in favour of assessee Credit for Dividend Distribution Tax u/s. 115-0 - Held that:- We find considerable force in the contention of the assessee. It is the submission of the assessee that it had paid Dividend Distribution tax to the extent of ₹ 58.56 crores out of which ₹ 47 crores have been given credit. The Ld. CIT(A) directed to verify the contention of the assessee that it had paid dividend distribution tax of ₹ 58.56 crores and it should be given credit. We do not find any infirmity in the order of the Ld. CIT(A) in directing the AO to give credit for the Dividend Distribution tax paid by the assessee.
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