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2023 (7) TMI 898 - AT - Income TaxBenefit of Section 10(38) - Payment of Securities Transaction Tax (STT) - assessee who carries on general insurance business - HELD THAT:- As decided in own case [2023 (1) TMI 1202 - ITAT DELHI] assessee is entitled to exemption under section 10. Therefore, we do not see any reason to differ from the order of the CIT (A) where he has allowed assessee's claim of exemption under section 10(23AAB) of surplus of Participating Pension Business and also dividend under section 10(34). Accordingly Revenue ground on this issue is rejected. Disallowance of depreciation - assessee failed to furnish relevant information before the Assessing Officer along with Audit Report - HELD THAT:- As decided in assessee own case [2021 (7) TMI 92 - ITAT DELHI] facts of the present assessment year are different as Ld. AR sufficiently demonstrated that the details were very much available before Ld. AO and Assessing Officer has not taken any steps to verify the same. In the year under consideration also, the relevant details for addition made to fixed assets in Financial Year 2009-10 have been placed on record by the assessee. The AO has, however, failed to take the same into consideration. We are, therefore, inclined to set aside this issue to the records of the AO for a de novo verification Accordingly this ground raised by assessee stands allowed for statistical purposes. Disallowance being provisions made for standard assets - HELD THAT:- This Bench in assessee’s own case for A.Y. 2011-12 [2023 (1) TMI 1202 - ITAT DELHI] has deleted the disallowance we find that there is no enabling mechanism in Rule 5(a) mandating an adjustment to disclosed profits by making an addition on account of provision made for Standard Assets - As under Rule 5 the Statute makes profit disclosed in Profit and Loss account sacrosanct, subject only do adjustments prescribed in Rules 5(a) to 5(c). The case law relied is, therefore, 'distinguishable. The Ld. CIT (A), in AY 2011-12, has also not properly addressed the issue. Relevant statutory provisions have been inadvertently misread and hence not properly understood. We therefore delete the disallowance - Decided in favour of assessee. Benefits u/s 44 qua Section 14A - HELD THAT:- It is a settled proposition of law now that as Section 44 of the Act provides a complete code for computation of profit and gain of the business of the assessee insurance company. The assessing officer cannot make any adjustments in the profit of the assessee’s business when they are calculated in accordance with the rules contained in first schedule. In assessee’s own case for A.Y. 2000-01, 2001-02 co-ordinate Bench [2009 (2) TMI 240 - ITAT DELHI-B] have held that in the light of aforesaid provisions of Section 44 of the Act there is no requirement of head wise bifurcation while computing the income u/s 44 in the case of insurance company. Thus, provisions of Section 14A are not relevant to make a disallowance. The findings of Ld. CIT(A) require no interference. The ground is decided against the Revenue.
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