| |
| The Tax Publishers2021 TaxPub(DT) 5893 (Karn-HC) : (2022) 444 ITR 0518 : (2022) 289 TAXMAN 0020 INCOME TAX ACT, 1961
Section 44
Rule 2 to First Schedule of section 44 was applicable to the business of life insurance, and not rule 5 of Part-B read with the First Schedule and thereby Tribunal was right in law in setting aside disallowance of surplus from shareholders account treated as “Income from other sources” by assessee by holding that surplus available both in Policy Holder's Account and shareholder's account was to be consolidated and net surplus was only to be taxed as income from business.
|
Insurance company - Insurance business - Computation of surplus -
Tribunal allowed claim of assessee, an insurance-company made on account of surplus from shareholders' account being treated as income from other business at Rs. 32,11,86,149 by holding that 'surplus' available both in Policy Holders' Account and Share Holders' Account was to be consolidated and only 'net surplus' was to be taxed as income from insurance business. AO challenged this on the ground that income from life insurance business was liable to be treated differently when compared to income from other business (shareholder's account) since section 44 read with First Schedule did not cover income from other business. Held: Rule 2 to First Schedule of section 44 was applicable to the business of life insurance, and not rule 5 of Part-B read with the First Schedule and thereby Tribunal was right in law in setting aside disallowance of surplus from shareholders account treated as “Income from other sources” by assessee by holding that surplus available both in Policy Holder's Account and shareholder's account was to be consolidated and net surplus was only to be taxed as income from business.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Secton 44 Section 10(23AAB) Section 10
 SUBSCRIBE FOR FULL CONTENT
|