https://www.taxtmi.com/caselaws?id=787420 Reallocation of management expenses prescribed by insurance regulations must be recognised for tax computation because the statutory computation rule accords binding effect to accounts prepared under insurance law; such regulatory reallocations do not constitute expenditure incurred for an unlawful purpose and therefore are not disallowable under the Explanation to the general business expenditure provision. Consequential assessment disallowance based on that reallocation falls away, and any penalty levied solely on that disallowance is cancelled. The article concludes that regulatory allocation under insurance law governs admissibility for computing insurance business income. en-us Thu, 12 Feb 2026 00:00:00 +0530 Thu, 05 Mar 2026 08:41:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787420 Reallocation of management expenses prescribed by insurance regulations must be recognised for tax computation because the statutory computation rule accords binding effect to accounts prepared under insurance law; such regulatory reallocations do not constitute expenditure incurred for an unlawful purpose and therefore are not disallowable under the Explanation to the general business expenditure provision. Consequential assessment disallowance based on that reallocation falls away, and any penalty levied solely on that disallowance is cancelled. The article concludes that regulatory allocation under insurance law governs admissibility for computing insurance business income. Case-Laws Income Tax Thu, 12 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787420