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2019 (6) TMI 36 - AT - Income TaxIncome recognition - addition on account of accrued interest on loans, debentures and bonds - computation of taxable income earned from business of insurance u/s 44 - HELD THAT:- Following the order passed by the Tribunal for AY 2011-12 [2019 (4) TMI 959 - ITAT DELHI] and order passed by the Hon’ble Delhi High Court in assessee’s own case for AYs 1986-87 and 1988-89 [2002 (9) TMI 44 - DELHI HIGH COURT] , we are of the considered view that the CIT (A) has rightly deleted the addition by not recognizing an amount of accrued interest on bonds, debentures and investment as income for the years under assessment as per policies framed by the Insurance Regulatory and Department Authority (IRDA). Disallowance u/s 14A - HELD THAT:- in view of the fact that the income of the assessee is to be computed as per section 44 read with Rule 5 of First Schedule coupled with non-obstante clause and in these circumstances, AO is not empowered to travel beyond these provisions. in case of insurance company, the assessee in this case, the income is to be computed as per provisions contained u/s 44 read with Rule 5 of First Schedule, coupled with non-obstante clause and in these circumstances, the AO is not empowered to travel beyond these provisions. Even otherwise, section 14A contemplates an exception for deduction as allowable under the Act are those contained under sections 228 to 438 of the Act and section 44 creates special application of these provisions in case of the insurance companies. - Decided against the Revenue.
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