TMI Blog2017 (9) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... down that computation of profits and gains of business or profession shall be computed in accordance with the provisions contained in sections 30 to 43C. Moreover, when the Act specifically says that profits and gains of insurance business shall be computed in accordance with the rules contained in the First Schedule then such computation has to be made according to that rule and not any other rule. We are unable to accept the contention that the benefit of section 35B should also be given to any insurance company. - Decided against assessee. - Income Tax Reference No. 1067 Of 1998 - - - Dated:- 29-8-2017 - S.C. DHARMADHIKARI SMT. VIBHA KANKANWADI, JJ. Mr. Suresh Kumar with Ms. Samiksha Kanani for the Applicant. Mr. F.V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services. This claim was rejected by the Income Tax Officer and by the First Appellate Authority. Thereafter, the matter was carried to the Tribunal and the Tribunal found that relief under Section 35B was permissible to an insurance company carrying on general insurance business and whose income had to be computed under Section 44 r/w Rule 5(a) of the First Schedule to the I.T. Act, 1961. There is a decision of this Court reported in (1969) 71 I.T.R. 761 { Commissioner of Income Tax, Bombay City II, Bombay Vs. New India Assurance Co. Ltd. } but what it found was that there was a second question as well and after that question was restored for consideration of the Tribunal, it appeared that there has been an amendment brought to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Income-tax Act, in particular, the provisions of sections 28 to 43B, the profits and gains of any business of insurance shall be computed in accordance with the rules contained in the First Schedule. This is a non obstante clause and rules have been specially made for computation of profits and gains of insurance business. The rules are contained in the First Schedule to the Act. There is a rule for computation of profits of life insurance business (rule 2). Another rule has been framed (rule 5) for computation of profits and gains of other insurance business. This means that profits and gains of insurance business (whether the life insurance or general insurance) can only be assessed in the manner laid down in the rules conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accept the contention of Mrs. Ramachandran that the benefit of section 35B should also be given to any insurance company. 6. Mr. Suresh Kumar would submit that this Judgment of the Hon'ble Supreme Court squarely answers the question referred in favour of the Revenue. 7. Mr. Irani, appearing for the assessee, would submit that such a Judgment has been pronounced by the Hon'ble Supreme Court and dealing with the very question referred for our opinion. He was unable to point out anything contrary to the opinion expressed by the Hon'ble Supreme Court and which binds us. He could not also point out from the statutory provisions that the position is altered in any manner. 8. In such circumstances, we answer the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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