TMI Blog2023 (3) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... s contained in the Act which relate to computation of income chargeable under the heads referred to therein, by providing that computation of income qua the said heads will be made in accordance with rules contained in the First Schedule. Section 44 provides for a statutory mechanism for computing profits and gains of an insurance business and includes, in this context, business carried on by a mutual insurance company or even by a cooperative society. In that sense it moves away from the usual and general method of computing income chargeable to tax by bearing in mind the heads of income of income referred to in Section 14 of the Act. This is plainly evident, since there is a specific reference to Section 199, [which broadly deals wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 - DELHI HIGH COURT] has taken a similar view. Decided in favour of assessee. - HON'BLE MR. JUSTICE RAJIV SHAKDHER AND HON'BLE MR. JUSTICE SUDHIR KUMAR JAIN For the Appellant Through: Ms Kavita Jha with Mr Aditya Vohra and Mr Abhishek Singhvi, Advs. For the Respondent Through: Mr Puneet Rai, Sr Standing Counsel. RAJIV SHAKDHER, J. (Oral): 1. This appeal is directed against the order dated 30.06.2021 passed by the Income Tax Appellate Tribunal [in short, Tribunal ] in ITA No.224/Del/2017, concerning Assessment Year (AY) 2014-15. 2. Counsel for the appellant says that the appellant is aggrieved by one part of the impugned order. 2.1 In this context, our attention has been drawn to the fact that the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Section 44 read with First Schedule of the Income Tax Act, 1961 [in short, Act ]? 9. We have heard counsel for the parties at some length. 10. Ms Kavita Jha, who appears on behalf of the appellant/assessee, says that the Tribunal has committed an egregious error in law in sustaining the disallowance made by the AO concerning interest on TDS, bonus unpaid and leave encashment which remains unpaid. 10.1 In sum, Ms Jha contends that since Section 44 of the Act is a specific provision, which is put in place by the legislature for computation of income, inter alia, chargeable under the head Interest on securities qua an assessee which carries on life insurance business; the other provisions contained in the Act for ascertaini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 199 or in sections 28 to43B, the profits and gains of any business of insurance, including any such business carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance with the rules contained in the First Schedule. 15. What emerges upon perusal of Section 44 of the Act is that it contains a non-obstante clause, which excludes the application of all provisions contained in the Act which relate to computation of income chargeable under the heads referred to therein, by providing that computation of income qua the said heads will be made in accordance with rules contained in the First Schedule. Therefore, in the event of any dissonance, the provisions of the rules contained in the First Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c reference to the provisions of the Act which will not apply to an assessee which is carrying on an insurance business, and these include provisions spanning between Sections 28 and 43B of the Act. The rules contained in the First Schedule appended to the Act will determine the manner in which the profits and gains of insurance business are to be ascertained 18. Thus, according to us, the Tribunal has committed an error in law, which needs to be corrected. 19. Therefore, for the foregoing reasons, we allow the appeal and set aside the impugned order. Consequently, the question of law as framed is answered in favour of the appellant/assessee and against the respondent/revenue. 20. We may note that for AYs 2005-16, 2008-19 and 2010- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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