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2019 (6) TMI 84 - AT - Income TaxDisallowance of written off depreciated investments - assessment of an assessee carrying on general insurance business - HELD THAT:- As decided in assessee's own case [2016 (8) TMI 326 - ITAT KOLKATA] because of the restrictions contained in section 44 read with Rule 5 of the First Schedule, there could not be any disallowance of the amount written off out of investments and, accordingly, the disallowance is deleted - Decided in favour of assessee Addition on account of amortization of premium paid on investments - HELD THAT:- As decided in assessee's own case [2016 (8) TMI 326 - ITAT KOLKATA] the particular item of dispute (debit entry made in the profit and loss account) falls under the category of ‘expenditure’ or ‘allowance’ or ‘provision’ and the same is not admissible under the Act, only then the concerned item can be added back in computing the income from general insurance business. The disallowance of amortised premium paid on investments made by the ld AO is not in accordance with the prescribed specific procedure in the assessee’s case. CIT-A duly appreciated the contentions of the assessee deleted the dis allowance correctly. SEE case of General Insurance Corporation of India vs CIT 1999 (9) TMI 3 - SUPREME COURT] and CIT vs Oriental Fire & General Insurance Co Ltd [2007 (5) TMI 193 - SUPREME COURT] - Decided in favour of assessee. Disallowance u/s 14A r.w.s. 8D - HELD THAT:- ld. CIT(Appeals) by relying, inter alia, on the decision of the Tribunal in the case of REI Agro Limited –vs.- DCIT [2013 (9) TMI 156 - ITAT KOLKATA] has directed the AO to re-compute the disallowance by taking into consideration the value of only those shares, which had yielded dividend income to the assessee during the year under consideration. Since the decision of the Tribunal in the case of REI Agro Limited [2013 (9) TMI 156 - ITAT KOLKATA] has been upheld by the Hon’ble Calcutta High Court and three is no other decision of the Hon’ble Jurisdictional High Court or the Hon’ble Supreme Court cited by the ld. D.R. taking a contrary view, we uphold the impugned order of the ld. CIT(Appeals) giving relief to the assessee. Addition towards Reserve created for Unexpired risk u/s 115JB - HELD THAT:- As the issue involved in the year under consideration as well as all the material facts relevant thereto are similar to that of A.Ys 2005-06, 2007 08 and 2008-09, we respectfully follow the order of the Tribunal for the said years and uphold the impugned order of the ld. CIT(Appeals) giving relief to the assessee on this issue AS dealt this issue very elaborately and had given proper finding that the reserve created for unexpired risk need not be added back for the purpose of computation of book profits u/s 115JB. The revenue was not able to controvert the findings of the ld CITA before us. Hence we find no infirmity in the order passed by the ld CITA in this regard - Decided against revenue Disallowance u/s 14A while computing the book profit u/s 115JB - CIT(Appeals) deleted the said addition relying, on the decision of M/s. Philips Electronics India Limited –vs.- DCIT [2016 (3) TMI 1056 - ITAT KOLKATA] - HELD THAT:- . Since this view taken by the Division Bench of the Tribunal has been affirmed by the Special Bench of the Tribunal in the case of VIREET INVESTMENT (P.) LTD [2017 (6) TMI 1124 - ITAT DELHI] holding that artificial disallowance u/s 14A as worked out by applying Rule 8D cannot be added while computing the book profit u/s 115JB of the Act and it is only the actual expenditure incurred by the assessee in relation to the exempt income, which is debited to the profit & loss account, can be added. Keeping in view the said decision of the Special Bench of this Tribunal, we find no infirmity in the impugned order of the ld. CIT(Appeals) deleting the disallowance - Decided against revenue
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