The Tax Publishers2020 TaxPub(DT) 5416 (Mad-HC)

INCOME TAX ACT, 1961

Section 115JB

Since provision of section 115JB had been made applicable to insurance companies as well with effect from 1-4-2003, Tribunal was to decide the issue on merits for assessment year 2013-14 as to whether AO was right in computing disallowance of reserve for unexpired risk provision towards IBNR/IBNER claim and disallowance under section 14A read with rule 18 and the Tribunal was to take a decision on merits and in accordance with law.

MAT - Computation of book profit - AO made addition of reserve for unexpired risk - Tribunal holding section 115JB not applicable in case of insurance companies

Assessee was an insurance company, AO while computing book profit under section 115JB made addition of reserve for unexpired risk. Assessee challenged this. Tribunal held that section 115JB was not applicable to insurance companies. Held: Since provision of section 115JB had been made applicable to insurance companies as well with effect from 1-4-2003, Tribunal was to decide the issue on merits for assessment year 2013-14 as to whether AO was right in computing disallowance of reserve for unexpired risk provision towards IBNR/IBNER claim and disallowance under section 14A read with rule 18 and the Tribunal was to take a decision on merits and in accordance with law. Therefore, matter was remanded to Tribunal for fresh consideration.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2013-14



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