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2021 (5) TMI 298 - AT - Income TaxExemption on dividend income u/s 10(34) - computing the income of insurance company - CIT-A allowed exemption considering the fetters prescribed in Section 44 - HELD THAT:- As decided in own case [2020 (11) TMI 601 - ITAT MUMBAI] CIT(A) has relied upon host of binding decisions to arrive at the conclusion that exemption u/s 10(34) with respect to dividend income would be available to the assessee and further, the provisions of Sec. 14A would not apply to insurance company. Thus Exemption u/s 10(34) could not be denied to the assessee - Decided against revenue. Addition on account of negative reserves - CIT(A) has allowed the claim of the assessee - HELD THAT:- As decided in own case [2020 (11) TMI 601 - ITAT MUMBAI] Assessee’s income was to be computed as per Sec. 44 of the Act and the assessee would be required to take Actuarial valuation Report in accordance with insurance Act, 1938. The negative reserves would be nothing but premium receivable by the insurance company. However, there would always be a chance that policyholder might not continue with the insurance polity bought by him which would result in non-receipt of premium which was otherwise receivable by the insurance company. Therefore, the same could not be taxed. See LIFE INSURANCE CORPN. OF INDIA VERSUS ADDL. CIT [2013 (6) TMI 377 - ITAT MUMBAI] - Decided against revenue.
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