Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 677 - AT - Income TaxRevision u/s 263 by CIT - Taxation of income from shareholders account - main plea of the assessee is that only for presentation purposes, the assessee prepares ‘policyholders account’ and ‘shareholders account’ and that shareholders account cannot be treated as other regular business carried out by the assessee so as to make it liable for taxation @30% - whether the income from shareholders account is to be treated as part of life insurance business and get taxed @12.5% prescribed u/s.115B of the Act or not? - HELD THAT:- This issue is no longer res integra in view of the decision of ICICI Prudential Insurance Co. Ltd [2015 (7) TMI 1259 - BOMBAY HIGH COURT] Also we find that the AO had made adequate enquiries in this regard during the course of assessment proceedings in response to the notice issued u/s.142(1) - assessee had indeed made detailed submissions. Hence, the ld. PCIT seeking to invoke revision jurisdiction u/s.263 of the Act on the ground that no enquiries were made by the ld. AO by applying Explanation 2 to Section 263 of the Act is grossly incorrect and is hereby quashed. In any case, the issue sought to be revised by the ld. PCIT u/s.263 of the Act is also covered in favour of the assessee by the decision of the Hon’ble Jurisdictional High Court on merits. Appeal of the assessee is allowed.
|