TaxTMI 
TaxTMI 
2017 (6) TMI 1257
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....nt to Policy Holder's Account and shown as part of 'surplus' in the 'actuarial valuation' was only transfer of capital asset and not taxable u/s 44 of the Act read with Rule 2 of the First Schedule. ii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal was correct in allowing the relief to the assessee by holding that 'surplus' available both in Policy Holders Account and Share Holder's Account is to be consolidated and only 'net surplus' is to be taxed as income from Insurance Business. iii) Whether on the facts and in the circumstances of the case and in law, the I TAT is justified in restoring to assessing officer the issue of taxing income of assess....
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....her on the facts and in the circumstances of the case and in law, the IT AT is justified in holding that section 14A is not applicable to income of insurance business computed u/s 44 of the Act when the ITAT itself had held that provisions of section 10 are applicable to income of insurance business computed u/s 44 of the Act The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the Addl. CIT 8(1) be restored. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary." 3. At the outset, the learned Counsel of the assessee submitted that ground No. (viii) i....
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....e business, there was no substantial question of law arising for consideration". Reference was made to the decision in LIC of India vs. CIT (1964) 51 ITR 773, wherein the Hon'ble Supreme Court has held that the Assessing Officer has no power to modify the account after actuarial valuation is done. The issues in 1st, 2nd & 3rd ground of appeal in the instant case are squarely covered by the above judgment. Respectfully following the same, we dismiss 1st, 2nd & 3rd ground of appeal filed by the revenue. 6.1 Now we turn to 4th, 5th- 6th and 7th ground of appeal as they address a common issue. In the case of Life Insurance Corporation of India Ltd. (supra), the assessee was engaged in the life insurance business. In its return of income....