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2019 (10) TMI 840 - AT - Income TaxAddition on account of income from sale of investment - assessee is into insurance business - HELD THAT:- We are of the considered view that investment made by the assessee are part and parcel of insurance business and the assessee has rightly treated the income from sale of investment as part of business of insurance. Moreover, in 2005-06, the Revenue itself has decided this issue in favour of the assessee by holding that profit and loss arising from the sale of investment is not chargeable to tax separately. In other words, it is beyond the purview of section 44 of the Act. Consequently, we are of the considered view that AO/CIT(A) have erred in making addition on account of income from sale of investment and as such are ordered to be deleted. Fringe Benefit Tax (FBT) provisions applicability - HELD THAT:- FBT provisions is not sustainable on the ground that in Rule 2 of Schedule 1 of the Act, there is no mandate to make any such addition on the income of life insurance business. Moreover, any adjustment in the provisions of section 28 to 43B of the Act is not required to be added/reduced from the income of the assessee from life insurance business. So, in view of the matter, addition made by the AO and confirmed by CIT (A) for AYs 2007-08, 2008-09 & 2009- 10 respectively is not sustainable, hence ordered to be deleted. Exemption u/s 10(34) - HELD THAT:- In respect of dividend income earned; that due to inadvertence, the assessee could not claim this exemption in the income tax return filed during the year under assessment. Keeping in view the fact that the appellate authorities can allow the ground even if the claim for relief/exemption has not been made part of the original or revised return. Even otherwise, to decide the controversy once for all and to stop the multiplicity of the proceedings, the assessee is entitled to raise the additional ground because the issue in controversy has also been decided in favour of the assessee by the Tribunal in AY 2006-07.
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