2018 (2) TMI 432

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessee, a company engaged in the business of life insurance, filed its return of income for asst. year 2013-14 on 26/9/2013 declaring NIL income. The case was taken up for scrutiny and the assessment was completed u/s 143(3) of the Incometax 1961 (in short 'the Act') vide order dated 18/3/2016, wherein the assessee's income was determined at Rs. 45,59,36,000/- in view of the Assessing Officer ('AO') denying the assessee the benefit of aggregation of surplus/deficit as per policy holders account with the surplus/deficit of shareholders account. 2.2 On appeal, the assessee submitted before the ld CIT(A) that as per the provisions of sec. 44 of the Act, for the purpose of computing income from life insurance business, the assessee is pe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....have heard the rival contentions and perused and carefully considered the material on record. The sole issue for consideration and adjudication before us is that as per the provisions of sec. 44 of the Act, for the purpose of computation of income from the business of life insurance, can the assessee aggregate surplus/deficit of policy holders and share holders account. We find that a co-ordinate bench of this Tribunal has considered a similar issue in the assessee's own case for asst. year 2012-13 in ITA No.1508/Bang/2015 dated 8/9/2017, following the decisions of co-ordinate bench in the assessee's own case for asst. year 2011-12 (Supra) and has observed and held that surplus/deficit of the policy holders should be aggregated with surplus....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... loss of the business of assessee as determined at Rs. 1745.61 crores for earlier years should be carried forward and set off against the business income of the current year. As we have held that surplus/deficit as per shareholders account should be aggregated with surplus/deficit in the policy holders account for determining the profit/loss of the assessee u/s 44, and such aggregation would results in a loss of Rs. 34,45,94,000/- as per the impugned order, the view of setting off of losses against income u/s. 70,72 would be academic and hence not decided." 5. In this view of the matter and also respectfully following the decision of the coordinate Bench of this Tribunal in assessees own case for AY 2011-12, we are of the view that....