9911796707
TMI Blog2017 (3) TMI 1904X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is directed against order of Ld. CITA dated. 03.03.2014 and pertains to assessment year 2010-11. 2. The grounds of appeal read as under: i) The CIT-A erred in confirming the action of the AO of adding the income from shareholder's funds credited directly to the shareholder's Account. ii) The CIT-A erred in his interpretation of Act, the Insurance Act 1938, the IRDA Act and the IRDA (prep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the record we find that ground no. (i) and (ii) are decided by the Tribunal in assessee own case in the order cited above vide para 5 thereof. We may gainfully referred to the concluding portion of the ITAT order as under: 1) We have rival submissions and perused the material on record. Basic question to be decided by us is whether the income respect of shareholders' account should be taxed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 and 114 of the paper book it becomes clearly that profit was allocated by the assessee on the basis of a particular formula. There is no doubt that income had accrued to the assessee and same was transferred to the share holders' account. In our opinion once income is earned by the assessee and later on it is applied for some specific purpose it cannot be treated as charge on profit. We are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder consideration cannot be termed as income of the Sovereign. It is not part of any tax, duty, cess or any other similar levy by the State, which could be termed asincome of Government of India. LIC cannot claim that it represents Government of India it is one of many a corporations established by Government of India for specific purposes. Income earned by it for carrying of business of Life Ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act were not applicable, that assessee could not be declared as assessee in default u/s.115 Q of the Act. In our opinion, in the case relied upon by the AR of the assessee, question of taxability of particular items of income under the head income from other sources was not before the Tribunal. Therefore, upholding the order of the FAA we decide Ground of appeal no.3 against the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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