TMI Blog2002 (9) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee's total income. He, accordingly, included the amount of interest accrued on such accounts in the total income of the assessee. - Tribunal, vide the impugned orders, has accepted the stand of the assessee that since the profits and gains of its business have been computed in accordance with the rules contained in the First Schedule to the Act, as stipulated in section 44 of the Act, the Assessing Officer cannot make any adjustments therein. - in the absence of any finding by the Assessing Officer that the taxable income has not been computed in accordance with section 44 of the Act, no fault can be found with the view taken by the Tribunal. - - - - - Dated:- 17-9-2002 - Judge(s) : D. K. JAIN., MS. SHARDA AGGARWAL. JUDGMENT The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee that since the profits and gains of its business have been computed in accordance with the rules contained in the First Schedule to the Act, as stipulated in section 44 of the Act, the Assessing Officer cannot make any adjustments therein. The Tribunal, thus allowed the appeals. Hence, the present appeals. We have heard Mr. R.D. Jolly, learned senior standing counsel for the Revenue, and Mr. Syali, learned senior counsel for the assessee. It is vehemently submitted by Mr. Jolly that the Tribunal has failed to appreciate the concept of real income as explained by the Supreme Court in State Bank of Travancore's case [1986] 158 ITR 102. The submission is that once the interest has accrued to the assessee according to the method of accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court in General Insurance Corporation of India v. CIT [1999] 240 ITR 139, and their Lordships observed thus: "Section 44 of the Income-tax Act is a special provision governing computation of taxable income earned from business of insurance. It opens with a non obstante clause and thus has an overriding effect over other pro visions contained in the Act. It mandates the assessing authorities to compute the taxable income for business of insurance in accordance with the provisions of the First Schedule. A plain reading of rule 5(a) of the First Schedule makes it clear that in order to attract the applicability of the said provision the amount should firstly be an expenditure or allowance. Secondly, it should be one not admissibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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