https://www.taxtmi.com/caselaws?id=255495 For life insurance business, section 44 operates as a special overriding code and income must be computed only under the First Schedule, treating the policyholders' and shareholders' accounts as part of one integrated business; the actuarial surplus method and transfers between those accounts were accepted, and separate taxation of the gross surplus was rejected. Section 14A disallowance was held inapplicable to this statutory computation scheme, and the depreciation claim on fixed assets could not be separately disallowed where the asset treatment followed the accepted insurance accounting format. Surplus in the shareholders' account, including dividend income and negative reserve treatment, was held to form part of the insurance business computation rather than a distinct taxable head. en-us Wed, 14 Jan 2015 00:00:00 +0530 Mon, 19 Jan 2015 08:20:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255495 For life insurance business, section 44 operates as a special overriding code and income must be computed only under the First Schedule, treating the policyholders' and shareholders' accounts as part of one integrated business; the actuarial surplus method and transfers between those accounts were accepted, and separate taxation of the gross surplus was rejected. Section 14A disallowance was held inapplicable to this statutory computation scheme, and the depreciation claim on fixed assets could not be separately disallowed where the asset treatment followed the accepted insurance accounting format. Surplus in the shareholders' account, including dividend income and negative reserve treatment, was held to form part of the insurance business computation rather than a distinct taxable head. Case-Laws Income Tax Wed, 14 Jan 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255495