TaxTMI 
TaxTMI 
2017 (10) TMI 722
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....he first issue in this appeal of Revenue is against the order of CIT(A) in deleting the addition made by the A.O. of income from shareholders account of Rs. 32.23 crores. For this, the Revenue has raised the following ground no. 1: "1. Whether on the facts and in the circumstances of the case and in Law, the Ld. CIT(A) is correct in holding that the income from share holders account of Rs. 32.23 crores has to be treated on par with the income from the insurance business under the policy holders account taxable u/s 44 of the IT. Act." 3. At the outset, the ld. Counsel for the assessee stated that this issue is squarely covered in assessee's own case by the Tribunal's decisions in ITA No. 2551/Mum/2010 for A.Y. 2007-08, in ITA No.....
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....nd the assessee's sole business purpose was to carry on 'Life Insurance' business as per extant regulations two accounts formed part and parcel of assessee's business. CIT(A) 'the decisions of Tribunal as well as its predecessors in earlier years concluded two accounts could not be taxed separately and allowed the appeal of the assessee, which has been assailed by revenue before us by raising Ground No. 1. The Ld. AR, at the outset drew our attention to the fact that CIT(A) correctly relied upon the decision in assessee's own case for earlier years and the issue was fairly settled in assessee's favor since past many years, by Mumbai Tribunal in ITA Nos. 2551Mum/2010 order dated 22/03/2013 for AY 2007-08 & ITA Nos....
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.... of Section 44 of the Act." (c) "Whether the Ld. CIT(A) is correct in holding that the provisions of chapter III of the LT, Act pertaining to exempt income as per section 10 was available to the assessee despite the fact that the computation of taxable income of the assessee (life insurance company) was governed by non-obstante provision of section 44 of the IT. Act which included even dividend income under the head income from other source to be dealt as per rules contained in the First Schedule of the I.T. Act? 6. At the outset, the ld. Counsel for the assessee stated that this issue is covered in assessee's own case in ITA No. 6223/Mum/2014 for A.Y. 2011-12 vide order dated 20.12.2013. He drew our attention to relevant para 4....
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....under the scheme of the act, income falling within the various clauses of Sec. 10 of the act is to be compulsorily excluded in computing the total income of the assessee and the provisions of Sec. 44 in relation to computation of profits and gains of business of insurance do not include incomes otherwise exempt u/s 10(34). Therefore, the dividend income of Rs. 6,78,13,292 is treated as exempt u/s 10(34) of the act has to be excluded from the computation of total income of the assessee." Similar view has been expressed in other pronouncements cited by Ld. AR. Hence, there being no. change in facts or circumstances, we are inclined to follow the same and dismiss all the three grounds of revenue's appeal. 7. We find that the Tr....