2018 (4) TMI 1522

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....wing inclusion of loss arising from fund under the pension scheme in the "assessed loss" from remaining sources, ignoring the settled position of law that income includes loss and that the income from fund under the pension scheme does not form part of the total income of the assessee u/s 10(23AAB) of the Income Tax Act, 1961." 3. Rival contentions have been heard and record perused. 4. Facts in brief are that assessee is a Life Insurance Company. During the course of scrutiny assessment, AO did not give effect to the order of the ITAT dated 19/12/2013 passed in assessee's own case. 5. By the impugned order, CIT(A) directed AO to follow the direction given by the ITAT in assessee's own case. We found that the Tribunal by following the o....

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....that the income from such fund has been exempted under section 10(23AAB) with effect from 1.4.1997, does not mean that the pension fund fund ceases to be insurance business, so as to fall outside the purview of the insurance business covered under section 44. In other words, the pension fund like Jeevan Suraksha Fund would continue to be governed by the provisions of section 44 irrespective of the fact that the income from such fund is exempted, or not. Therefore, while determining the surplus from the insurance business, the actuary was justified in taking into consideration the loss incurred under Jeevan Suraksha Fund. (Para 17). The object of inserting section 10(23AAB) ns per the Board Circular no. 762 dated 18.2.1998 was to enable the ....