2019 (3) TMI 480

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....u/s. 143(3) of the Income Tax Act (Act), dated 27-02-2014. 2. The Ld. AR submitted for the Bench that the assessee is engaged in the business of General Insurance. The Ld. AR submitted that the AO made the following four additions in the assessment order as per the details below:     Rs. a. Profit on sale of investments claimed as exempt u/s. 10(38) 588,85,02,720 b. Disallowance u/s. 14A 30,52,81,492 c. Payment to clubs 2,83,505 d. Unutilized CEN VAT Credit 4,30,42,802 3. The Ld. AR submitted that this is second round of litigation before the Tribunal. In the first round, the Hon'ble ITAT vide its order dt. 03-08-2018, restored the issue back to the file of CIT(A) to decide the issue afresh in respect of exemp....

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....y the Finance Act, 1989. 3.1. Ld. Counsel for the assessee also submitted that the intent of Clause(b) was to provide exemption to General Insurance Companies on profits on sale of investments to enable them to play an active role in the capital market. Now the Rule 5(b) of the First Schedule has been amended by the Finance Act, 2010 by re-inserting Clause-5(b), which provides that - any gain or loss on realization of investments shall be added or deducted, as the case may be, if such gain or loss is not credited or debited to Profit and Loss A/c, which is applicable from 1st April, 2011. Ld. AR submitted that the said amendment would not make the assessee liable to pay taxes on the profit on sale of investments by way of shares and securi....