TMI Blog2019 (7) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Commissioner of Income Tax vs. M/s.Royal Sundaram Alliance Insurance Company Limited [ 2019 (2) TMI 923 - MADRAS HIGH COURT] considered these three substantial questions of law and the substantial questions of law were decided against the Revenue. MAT computation - whether the Tribunal is correct in holding that the provisions of Section 115JB which enables the companies to compute book profit may not be applicable to insurance companies, this Court had an occasion to consider the same question in the case of The Commissioner of Income Tax vs. M/s.Cholamandalam MS General Insurance Company Limited [ 2019 (2) TMI 1075 - MADRAS HIGH COURT] and the same was rejected and held against the Revenue. - Tax Case Appeal Nos.323, 324, 328, 330, 333, 336, 329, 332, 335, 337, 331, 326, 334, 338, 340, 343, 341, 344 and 345 of 2019 And C.M.P.Nos.12062, 12064, 12081, 12084, 12086, 12080, 12083, 12087, 12088, 12073, 12082 of 2019 - - - Dated:- 14-6-2019 - Tax Case Appeal Nos. 12089, 12092, 12095, 12101 of 2019, 12103, 12104 and 12106 of 2019 Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) rws 147 Order date 143(3) rws 263 Order date 2003-2004 18.01.2016 20.12.2010 26.12.2008 26.12.2008 2004-2005 29.12.2006 17.12.2009 -- -- 2005-2006 13.12.2007 20.12.2010 -- -- 2007-2008 18.12.2009 03.12.2012 -- -- 2008-2009 28.12.2010 -- -- -- 2009-2010 31.12.2011 -- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -- -- -- -- 2009-2010 086/11-12 28.10.2013 -- -- -- -- 2010-2011 012/13-14 23.01.2014 -- -- -- -- 2011-2012 443/14-15 29.02.2016 -- -- -- -- 2012-2013 035/15-16 21.12.2016 -- -- -- -- 2013-2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chny/2017 1571/Chny/2017 -- -- 3.Common issues arise in all these tax case appeals. However, in all the tax case appeals, all the issues are not raised. 4.Four substantial questions of law to be considered are as follows:- (i) Whether the Tribunal was justified in holding that profit on sale of investments is exempt thereby ignoring that profits realized from investments are real and hypothetical? (ii) Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that the assessee is not liable to deduct the tax at source made to surveyors outside the country was not taxable in India? (iii) Whether on the facts and circumstances of the case and in law, the Tribunal was justified and correct in holding that the provisions of Section 115JB of the Act which enables the companies to compute book profit may not be applicable to insurance companies? and (iv) Whether on the facts and circumstances of the case and in law, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Oriental Insurance Co. Ltd., vs. Deputy Commissioner of Income-tax reported in [2017] 84 taxmann.com 312 (Delhi). The Court analysed Rule 5(b) of the First Schedule to the Act, which stood omitted by Finance Act, 1988 and was re-introduced by Finance Act, 2009 with effect from 1st April, 2011. It was pointed out that the rationale for omitting Rule 5(b) was to exempt profits and gains in investments by the General Insurance Corporation of India and the four companies formed under Section 16 of the General Insurance Business (Nationalisation) Act, 1972. After referring to the relevant provisions, the explanation offered in the memorandum to the Finance Bill, 1988, and the circular of the CBDT in Circular No.528, dated 16.12.1988, the Court held as follows:- 38.Thus, the major change, therefore, sought to be brought about by the 2009 amendment was to align it with the IRDA Regulations regarding preparation of accounts of general insurance companies. The changed norms, in terms of said Regulations, required a non-life insurance company to include in its Profit and Loss ('P L') Account or Revenue Account profit or loss on realis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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