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2022 (11) TMI 127 - AT - Income TaxApplication of section 14A to Insurance business - scope considering the fetters prescribed u/s 44 -- HELD THAT:- As decided in assessee’s own case for assessment year 2012 – 13 [2020 (11) TMI 601 - ITAT MUMBAI] and for assessment year 2013 – 14 [2021 (5) TMI 298 - ITAT MUMBAI] Section 44 is a special provision applicable in the cases of insurance companies and applies, notwithstanding anything to the contrary contained in the provisions of the Income Tax Act relating to the computation of income chargeable under different heads. For computing the profits and gains of the business of insurance company, the AO had to resort to Section 44 and the prescribed rules, and could not have applied Section 28 to 43B, since the same were excluded from the purview of Section 44. This necessarily includes the exception provision enshrined under Section 14A of the Act. Therefore, in our view, the AO could not have travelled beyond Section 44 in the first schedule of the Act. Besides, the tribunal has also invoked the rule of consistency since the same view of the Tribunal has prevailed in respect of the earlier assessment years i.e., 2000-01, 2001-02 and 2005-06. Adjustment of negative reserve - Mathematical reserves is a part of the Actuarial valuation and the surplus takes into account the mathematical reserve also. Besides the impugned order follows the decision of the Apex Court in LIC of India [1963 (12) TMI 5 - SUPREME COURT] wherein the Apex Court has held that the Assessing Officer has no power to modify the account after Actuarial valuation is done. It is also pertinent to note that for the Assessment Year 2007-08, the Assessing Officer had raised an identical issue during the assessment proceedings and thereafter by the assessment order dated 30 December 2009 held that no adjustment of the Actuarial valuation is to be done by following the decision of the Apex Court in LIC of India's case (supra). Therefore we find no substantial question of law arising for our consideration. Allowance of exemption u/s 10 (34) - Tribunal is correct in allowing the dividend income of assesee as exempt u/s. 10(34) as relying on ICICI Prudential life insurance Co Ltd [2015 (7) TMI 1346 - BOMBAY HIGH COURT]
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