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2018 (1) TMI 802 - AT - Income TaxAddition on account of profit on sale/redemption of investments - Held that:- As in assessee's own case [2017 (9) TMI 172 - DELHI HIGH COURT] in this case too assessee had taken identical plea regarding profit on sale of investment being exempt as the same is not covered by section 44 of the Income Tax Act. Further it is observed from the assessment order that assessee has been consistently crediting the profit on sale of investment to general reserve and the change in its treatment was made only due to the change being mandated by IRDA Regulation in 2002. It is observed that Hon’ble High Court in assessee’s own case for assessment year 2005-06 has observed this change of accounting pattern for non life insurance companies were required to credit income from sale of investments directly to P&L account which was made applicable only from assessment year 2011-12. Hon’ble High Court has also observed that prior to 01/04/11 there was no such provision which would require revenue to disallow the claim of assessee in respect of sale of investment. - Decided in favour of assessee Denial of exemption under section 10 (38) - Held that:- In the assessment order it is observed that assessee had raised an alternative plea in respect of profit on sale of investments being exempt under section 10 (38) of the Act. In our considered opinion this ground now becomes in fructuous in view of Ground No. 1 which has been decided in favour of assessee. Disallowance of depreciation - Held that:- As we compare the factual position prevalent during assessment year 2000-01 and 2001-02 based on which the Tribunal confirmed the disallowance of depreciation, we observe that it was so decided because assessee failed to furnish relevant information before the Assessing Officer along with Audit Report. Facts of the present assessment year are different as Ld.AR sufficiently demonstrated that the details were very much available before Ld.AO and Assessing Officer has not taken any steps to verify the same.We therefore are inclined to set aside this issue to Ld. AO for proper verification of the details filed by assessee
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