2018 (9) TMI 469

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..... the case and in law the Ld.CIT(A) was correct in concluding that transfer from Shareholder's account to Policy Account And Shown As part of 'surplus' in the actuarial valuation was only transfer of capital asset and not taxable u/s 44 of the Act read with Rule 2 of the First Schedule?" 2. Whether on the facts and in the circumstances of the case and in law the Ld.CIT(A) was correct in allowing relief to the assessee by holding that 'surplus' available both in Policy Holders Account and Share Holder's account is to be consolidated and only 'net surplus' is to be taxed as income from Insurance Business? 3. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating t .....

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..... that Section 14A is not applicable to income of insurance business computed u/s 44 of the Act when the ITAT itself has held that the provisions of Section 10 are applicable to income of insurance business computed u/s 44 of the Act. The assessment for impugned AY was framed by Ld. Assistant Commissioner of Income Tax Range-1(3) u/s 143(3) of the Income Tax Act, 1961 on 24/03/2014 wherein the income of the assessee has been assessed at Rs. 387.08 crores after certain adjustments / disallowances as against returned income of Rs. 150.47 crores e-filed by the assessee on 17/11/2011. During impugned AY, the assessee being resident corporate assessee was engaged in the business of Life Insurance. 2.1 The material on record reveals that in ter .....

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..... 0.50 Crores, earned from pension segment and claimed exempt u/s 10(23AAB) by the assessee, was denied to the assessee. 2.3 The third issue is related with addition of incremental negative reserves of Rs. 1.03 Crores as per actuarial report which has been made by following the decision in earlier years. 3. Aggrieved, the assessee contested all the additions with success before Ld. CIT(A) vide impugned order dated 31/01/2017 wherein the additions have been deleted by following the orders of this Tribunal in assessee's own case for AYs 2002-03, 2007-08 to 2010-11. The orders of Ld. first appellate authority also places reliance on catena of other judgments rendered by this Tribunal or various higher judicial authorities in the case of other .....

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