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2018 (3) TMI 589 - HC - Income TaxExemption to the assessee u/s. 10(38) - Whether profits on sale of investments are liable to be (included) taxed in the hands of the assessee i.e. profits on sale of investments being liable to be tax. It does not deal with the benefit of exemption under Section 10(38) - Held that:- The question as raised herein proceeds on the basis that even if sale of investments is liable to be taxed, yet to the extent it relates to long term capital gain falling under Section 10(38) of the Act, the exemption would be available. The question arising for our consideration in this appeal is different from the question on which the appeal of the GIC in ITX No. 201 of 2011 (2013 (2) TMI 852 - BOMBAY HIGH COURT) was admitted. We find that this Court in General Insurance Corporation (2011 (12) TMI 70 - BOMBAY HIGH COURT) had also relied upon the communication dated 21st February, 2006 of the CBDT to the Chairman of the Insurance Regulatory and Developing Authority. In the above communication, it has been clarified that exemption available to any other assessee under clause 10(38) relating to long term capital, would also be available to a person carrying on non-life Insurance business. Mr. Suresh Kumar very fairly states that the CBDT communication dated 21st February, 2006 addressed by the CBDT to the Chairman, IRTA, as well as the decision of this Court in GIC (supra) would be binding upon the Revenue. - Decided in favour of assessee.
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