TMI Blog2020 (12) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... er is remanded to the Tribunal to decide the issue with regard to the computation under book profit and whether the assessing officer was right in his computation. - Tax Case Appeal Nos.339 and 342 of 2019 - - - Dated:- 8-12-2020 - The Honourable Mr. Justice T.S. Sivagnanam And The Honourable Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr.M.Swaminathan Senior Standing Counsel For the Respondent : Mr.M.V.Swaroop COMMON JUDGMENT T.S.SIVAGNANAM, J. These appeals, at the instance of the revenue filed under Section 260A of the Income Tax Act, 1961 (the 'Act' for brevity) challenging the common order passed by the Income Tax Appellate Tribunal, 'A' Bench, Chennai in ITA Nos.1571 and 1085/Chny/2017 dated 28.08.2018 for the Assessment Year 2013-2014 respectively. 2. The Revenue had raised Five Substantial Questions of Law for consideration. When the appeals came up for admission before us, on 21.06.2019, we had admitted the appeals only with regard to Substantial Question of Law No.3 and decided the other questions on the following lines: 3. We have heard Mr.M.Swaminathan, learned Senior Standing Counsel for the Revenue and M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Service Tax Department or by the Income Tax Department. At this juncture, we refer to the findings recorded by the CIT(A) in paragraph 12.7.7 of his order, which read as follows : I have considered both the points of view briefly mentioned above. After going through all the points of contention and perusing the relevant documents, I have come to the following conclusion : a) The Assessing Officer has merely based his conclusion on the content of the show cause notice issued by the Service Tax Department. Till date, the Service Tax Department has not passed any order finding fault with the appellant. There is no evidence whatsoever pointing out that the aforesaid payment was not genuine or the motor dealers did not render the services. b) The appellant has submitted all the necessary supporting documents to prove that the aforesaid payment was genuine and the services were actually rendered by the motor dealers. c) The C AG and IRDAI have not found fault with the aforesaid payment. d) As per the guidelines of the appellant company and the IRDAI, the outsourcing of services to the motor dealers was permitted. e) The Assessing Officer has not even prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeals are admitted on substantial question of law No.3 namely 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 ? The Revenue is at liberty to re-frame this substantial question of law at the time of hearing the appeal since the respondent - assessee raised a dispute that they never claimed benefit under Section 115JB of the Act for the assessment year under consideration. List on 25.7.2019 3. We have heard Mr.M.Swaminathan, learned Senior Standing Counsel for the appellant / revenue and Mr.M.V.Swaroop, learned counsel for the respondent / assessee. 4. It may not be necessary for us to dwell deep into the factual matrix, as we find that the error crept in the order passed by the Tribunal while deciding the issue with regard to 'addition of reserve for unexpired risk' while computing book profit under Section 115 JB of the Act. The Tribunal in Paragraph No.55 of the Impugned Order has noted that this issue arises for consideration in the Revenue' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.2) Act, 2009, w.e.f. 01.04.2010 and ten per cent was substituted for seven and one-half per cent by the Finance Act, 2006, w.e.f. 01.04.2007] [eighteen and one-half per cent]: Inserted by the Taxation Laws (Amendment) Act, 2019, w.e.f.01.04.2020 [provided that for the previous year relevant to the assessment year commencing on or after the 1st day of April, 2020, the provisions of this sub-section shall have effect as if for the words eighteen and one-half percent occurring at both the places, the words fifteen percent had been substituted] (2) Substituted for the portion beginning with the words Every assessee , and ending with the words and figures the Companies Act, 1956 (1 of 1956): by the Finance Act, 2012, w.e.f. 01.04.2013. Prior to its substitution, the relevant portion read as under: (2) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 (1 of 1956): (a) being a company, other than a company referred to in clause (b), shall for the purposes of this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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