2018 (1) TMI 802

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....n account of profit on sale/redemption of investments. 1.1. That on facts and in law the CIT(A)/AO erred in not appreciating that by virtue of CBDT Circular no.528 dt. 16.12.1988 income earned by the appellant from profit on sale/redemption of investments is not liable to tax. 2. Without prejudice, that on facts and in law the CIT(A) erred in upholding the action of AO in denying benefit of exemption u/s 10(38) of the Income Tax Act of Rs. 570,06,36,179/-. 3. That on the facts and in law the CIT(A) erred in upholding a disallowance of Rs. 7,01,24,122/- out of the total depreciation allowance claimed by the appellant u/s 32 of the Act. 3.1. That on facts and in law the CIT(A)/AO erred in making/upholding t....

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....miscellaneous insurance which covers vehicle insurance, medical insurance etc. Assessing officer completed the assessment under section 143(3) by making following additions: 1.  profit on sale of investment- Rs.6,00,01,47,000/- 2. interest recognition on realisation- Rs.43,30,97,000/ 3. depreciation being disallowed- Rs.7,01,24,122/- 4. guesthouse expenses disallowed- Rs.33,77,79/- 5. disallowance under section 14 A Rs.7,01,22,000/- 6.  addition to the book profit Rs.7,01,22,000/- 2.2. Aggrieved by the assessment order passed, assessee preferred appeal before Ld.CIT(A). Ld.CIT(A) gave partial relief to assessee by confirming certain additions made by Ld.AO. 3. Aggrieved b....

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....ot taxed in terms of Rule 5(b) could, even after such amendment was deleted, be taxed in the hands of the insurance company. It was held that income which was earlier taxable under one specific clause could not be brought to tax after the deletion of such clause. 47. It is futile, therefore, for the Revenue to seek to bring to tax profits on sale of investment because in some earlier year the Assessee may have taken what appears to DC a contradictory stand. In any event, the Assessee appears to have explained that the issue that arose in the earlier case was regarding investments written off-and not profit on sale/redemption of investments. The observations of ITAT in its order for AY 1990-91 with regard to the profit on sale/redem....

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....s directly to P&L account which was made applicable only from assessment year 2011-12. Hon'ble High Court has also observed that prior to 01/04/11 there was no such provision which would require revenue to disallow the claim of assessee in respect of sale of investment. 4.5. Since there is no difference in the facts for the year under consideration viz-a-viz assessment year 2005-06, and that the year under consideration before us is assessment year 2007-08, respectfully following the ratio of Hon'ble High Court we allow this ground raised by assessee. 4.6. Accordingly the ground raised by assessee stands allowed. 5. Ground No. 2 is in respect of denial of exemption under section 10 (38) of the Act. 5.1. In the assessment order i....

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....and allow depreciation as per the provisions of law. The assessee has not given the basic details, therefore, the question of allowing any depreciation on such assets cannot be accepted. We endorse the findings of the CIT(A), having regard to the facts and circumstances of the case." 6.3. Ld. counsel adverting to the facts in the present case submitted that admittedly for the year under consideration assessee has submitted all the relevant information in respect of the assets for which depreciation has been claimed which is evident from the observations made by Ld.AO in paragraph 4.3 of his order. For the sake of convenience the same is reproduced hereunder: "4.3. Subsequently during the course of assessment proceedings the assessee has ....