TMI Blog2018 (2) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-1-2018 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER For The Appellant : Shri C.H Sundar Rao, CIT For The Respondent : Shri Chavali Narayan, C.A ORDER PER SHRI JASON P BOAZ, ACCOUNTANT MEMBER : This appeal by the Revenue is directed against the order of the Commissioner of Income-tax (Appeals) - 5, Bangalore dated 28/3/2017 for asst. year 2013-14. 2 Briefly stated, the facts of the case are as under:- 2.1 The assessee, a company engaged in the business of life insurance, filed its return of income for asst. year 2013-14 on 26/9/2013 declaring NIL income. The case was taken up for scrutiny and the assessment was completed u/s 143(3) of the Incometax 1961 (in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances of the case. 2. Whether the CIT(A) is right, in law in allowing assessee appeal without appreciating the fact that the special provision u/s.44 of the I.T Act 1961 have been mixed with the normal provision of the Act by the assessee 3. The learned CIT(A) failed to construe the special provision u/s.44 of the Act read with First Schedule and 115B of the Act in a meaningful manner to differentiate income from life insurance and other income. 3.2.1 We have heard the rival contentions and perused and carefully considered the material on record. The sole issue for consideration and adjudication before us is that as per the provisions of sec. 44 of the Act, for the purpose of computation of income from the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rounds 9 to 13, we find that they are alternate grounds. If the deficits in the policy holders account is to be set off against the surplus as per shareholders account in computing the taxable income of the assessee u/s. 44 of the IT Act, the assessee contends (i) deficit in the policy holders account should be set off against the surplus as per shareholders account u/s 70 of the IT Act as both constitutes a single business and sec. 70 permits inter unit set off and (ii) the loss of the business of assessee as determined at ₹ 1745.61 crores for earlier years should be carried forward and set off against the business income of the current year. As we have held that surplus/deficit as per shareholders account should be aggregated with s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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