2017 (9) TMI 734

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.... case, the Tribunal was justified in holding that the assessee, which is a general insurance company, was entitled to relief admissible under section 35B of the I.T. Act, 1961, having particular regard to the provisions of section 44 of the I.T. Act read with rule 5 of the First Schedule to the Act?" 2. The statement of the case and pertaining to Assessment Years 1973-74 and 1974-75 discloses that for the two assessment years under consideration a deduction under Section 35B of the Income Tax Act, 1961 ("I.T. Act, 1961" for short), in respect of an expenditure which was incurred by the assessee company in insurance business, was the subject matter or an issue before the Tribunal. The assessee's claim was for weighted deduction under Se....

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....he Judgment of the Hon'ble Supreme Court in the case of Commissioner of Income Tax v. Hero Cycles Pvt. Ltd. and another, reported in Vol 228 I.T.R. 463 (SC). 5. In that decision, the Hon'ble Supreme Court considered the scope of Section 44 of the I.T. Act, 1961. The Hon'ble Supreme Court in answering such question held as under:" The question in this case relates to the scope of Section 44 of the Income Tax Act, 1961. The Section states: "Section 44. Notwithstanding anything to the contrary contained in the provisions of this Act relating to the computation of income chargeable under the head 'Interest on securities', 'Income from house property', 'Capital gains' or 'Income from other sources',....

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....d section 35B was not in the statute book. The contention of Mrs. Ramachandran is that when section 35B was inserted, it was not specifically mentioned that section 35B will not apply to insurance companies. Therefore, the benefit of section 35B will have to be given to the insurance company. We are unable to accept this contention for two reasons. First, when the Act speaks of section 28 to section 43B, then each one of the sections from section 28 to section 43B will be included. The newly inserted section 35B was not specifically mentioned because it was not necessary to do so, just as it was not necessary to specifically mention section 35B in section 29, which lays down that computation of profits and gains of business or profession s....