2019 (2) TMI 923

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), are directed against the orders of the Income-tax Appellate Tribunal, "A" Bench, Chennai, dated 06.08.2018, passed in I.T.A.No.1666/Chny/2011,I.T.A.No.2310/Chny/2014, I.T.A.No.1668/Chny/2011,I.T.A.No.1669/Chny/2011, I.T.A.No.1629/Chny/2011, I.T.A.No.1626/Chny/2011,I.T.A.No.1628/Chny/2011, I.T.A.No.1630/Chny/2011, I.T.A.No.1670/Chny/2011, I.T.A.No.1356/Chny/2013 I.T.A.No.1367/Chny/2013 and I.T.A.No.2371/Chny/2014 for the assessment years 2005-2006 to 2010- 2011. 2.We have heard Ms.V.Pushpa, learned Senior Standing Counsel appearing for Mr.M.Swaminathan, learned Senior Standing Counsel for the petitioner/revenue and Mr.Sandeep Bagmar, learned counsel for the responden....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ance ? ? ? ? ? ? ? ? ? ? ? ? 5 TDS on Survey Fees ? ? ? ? ? ? ? ? ? ? ? ? 4.The revenue filed these appeals by raising the following substantial questions of law:- "1.Whether the Tribunal was justified and correct in holding that UPS is the part of computer and entitled for depreciation @ 60%? 2.Whether the Tribunal was justified and correct in holding that the provisions of 115JB of the Act which enables the companies to compute book profit may not be applicable to insurance companies? 3.Whether the Tribunal was right in holding that provision made towards contribution to Solatium fund is not liable to taxation? 4.Whether th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....und are dismissed and consequently, the above substantial question of law is answered in favour of the assessee. 3.Solatium Fund: 8.The revenue is on appeal before us contending that the solatium fund has been estimated in a routine manner and this amount is an unascertained liability and therefore, liable to be disallowed while computing book profit under Section 115JB of the Act. We have perused the finding recorded by the Tribunal in this regard and we find that the contribution of 0.1% of gross premium from motor vehicle insurance is done as per the directions given by the Government of India and this amount has been paid by the assessee as per the decision taken by the General Insurance Council in the meeting held on 04.02.2005. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Court in Bharat Earth Movers Ltd. vs. CIT [2000] 245 ITR 428/112 Taxman 61 has observed as under:- "The law is settled: if a business liability has definitely arises in the accounting year, the deduction should be allowed although the liability may have to be quantified and discharged at a further date. What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty though the actual quantification may not be possible. If these requirements are satisfied, the liability is not a contingent one." In this case, the liability of making a contribution to the Solatium fund at 1% of premium received, is a certain liability in view of IRDA letter dated 13th May, 200....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....m received by an Insurance Company from an other Insurance Company. We find that the Tribunal rightly decided the issue in favour of the assessee and the revenue has not brought out any ground to interfere with the said finding. Accordingly, the appeals filed by the revenue on this ground are dismissed and consequently, the substantial question of law is answered against the revenue. 5.TDS on Survey Fees: 12.Ms.V.Pushpa, learned Senior Standing Counsel would vehemently contend that the fee has been paid for utilizing the expertise of the surveyor and therefore, tax has to be deducted at source. 13.We have heard Mr.Sandeep Bagmar, learned counsel for the assessee on the said issue. 14.As rightly held by the Tribunal, the surveyor....