TaxTMI 
TaxTMI 
2020 (5) TMI 357
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd circumstances of the case and in law, the Ld. CIT(A) / AO erred in holding that the total profit disclosed by the Appellant in the Shareholder's Profit and Loss Account (Form A-PL) amounting to Rs. 221,77,96,000 (which includes profit on sale of investments amounting to Rs. 31,07,15,000) was not the profit of the life insurance business of the Appellant and, consequently, erred in holding that the provisions of Section 44 of the Act read with the First Schedule thereto do not apply to the said profit. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) / AO erred in not appreciating the Appellant's contention that its income was to be computed taking into account the surplus of the actuarial valuation done in accordance with the Insurance Act, 1938 as represented in Form I ('Old Form I'). 4. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in upholding the addition of Rs. 310,94,94,000 to the taxable income of the Appellant made by the Ld. AO by considering the amount appropriated as Funds for Future Appropriation ("FFA") as part of the actuarial surplus being liable to tax under Section 44 read with Rul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....from non insurance activities and taxed the same @30% in that assessment year, the AO made the following additions as under:- S. No Particulars Amount (in Rs.) 1. Bonus allocated to policyholders account was treated as^ part of taxable actuarial surplus u/s 44 read with Rule 2 of the First Schedule of the Act 389,73,39,000 - 2. Amount set aside as Funds for Future Appropriations (FFA) was also treated as part of the taxable actuarial surplus u/s 44 r.w. Rule 2 of the First Schedule of the Act 310,94,94,000 3. Provision for bad debts was disallowed 57,76.000 4. Donation paid (taxed as business income at 30%) was disallowed 3,00,00,000 5. Income from shareholder's account taxed at normal rates (i.e. @30%) (this amount also includes the adjustment made on account of profit on sale of investment amounting to Rs. 31.07.15.000/-) on the ground that profit on sale of investments in the shareholder's account don't form part of the life insurance business 221,77,96,000 5. The assessee challenged the assessment before the ld CIT (A) who passed an order dated 15.11.2017 deleted the disallowance of provision of doubtful debts and dis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....interest on Securities", "Income from House Property", "capital gains" or "Income from other sources", or in section 199 or in section 28 to 43B, profits and gains of any business of insurance, including any such business carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance with the rules contained in the First Schedule.' The First schedule to the Income tax Act contains three parts, viz., A,B & C. Part A which pertains to life insurance business is extracted here under for ready reference as is in existence during the impugned assessment year: "The First Schedule Insurance Business A.- Life insurance business Profits of life insurance business to be computed separately. 1. In the case of a person who carries on or at any time in the previous year carried on life insurance business, the profits and gains of such person from that business shall be computed separately from his profits and gains from any other business. Computation of profits of life insurance business. 2. The profits and gains of life insurance business shall be taken to be the annual average ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....referred to as the security fund), as the Central Government may, by notification in the Official Gazette, specify in this behalf: Provided that where the assessee makes during the said previous [years] any deposit of an amount of not less than two and one-half per cent of the profits and gains o the life insurance business in the security fund, the amount of income-tax payable by the assessee under the said clause (i) shall be reduced by an amount equal to two and one-half per cent of such profits and gains and, accordingly, the deposit of thirty-three and one third per cent required to be made under this sub-section shall be calculated on the income-tax as so reduced." 66. Section 115B was inserted by the Finance Act, 1976 but with effect from 1 June, 1976. It is, therefore, applicable for assessment year 1977-78 and thereafter. At the time of insertion, the section contained only the provisions that were later renumbered as sub-section (1). The scope and effect of the insertion was explained by the Board in a circular as under: "Rate of tax on profits and gains of life insurance business - New section 115B. - 37.1 As explained in paragraph 40 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....umber of years during which premiums are payable is less than twelve, for each such premium or each such year 71/2 per cent of such first year's premiums received during the previous year; (c) 90 per cent of the first year's premiums received during the previous year in respect of all other life insurance policies; (d) in respect of all renewal premiums received during the previous year, an amount calculated at such percentage thereof as is permissible under sub-section (2) of section 40B of the Insurance Act, 1938 (IV of 1938), as reduced by any expenditure or allowance which is not deductible under sections 30 to 43 in computing income chargeable under the head "Profits and gains of business or profession". (ii) Rule 3 was in the following terms: (a) four-fifths of the amounts paid to or reserved for or expended on behalf of policy-holders shall be allowed as a deduction: Provided that if any amount so reserved for policy-holders ceases to be so reserved, and is not paid to or expended on behalf of policy- holders, that proportion of such amount (one-half or four-fifths, as the case may be) if it has been previous allowed as a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....life insurance business determined on the modified basis has been laid down in new section 115B of the Income-tax Act. These changes have been explained in paragraphs 37 and 40 of this circular." Rate of tax on profits and gains of life insurance business - New section 115B. "37.1 As explained in paragraph 40 of this circular, the Finance Act has substantially modified the basis for determining profits and gains of life insurance business. The rate of income-tax to be charged on the profits and gains of the life insurance business determined on the modified basis has been laid down in new section 115B of the Income-tax Act. Under the new provision, in the case of a taxpayer having income from life insurance business, the income-tax payable on the profits and gains of the life insurance business will be calculated at the rate of 12 ½ percent. of such profits and gains and the remaining income, if any, will be charged to tax at the rates specified in the annual Finance Act. 37.2 This amendment has come into force with effect from the 1st June, 1976, and will apply in relation to the assessment year 1977-78 and subsequent years. [Section 20 (part) of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aph 37. 40.3 This amendment will come into force with effect from the 1st April, 1977, and will accordingly apply in relation to the assessment year 1977-78 and subsequent years. [Section 23 of the Finance Act]." 68. We noted that Section 44 of the Act start with a non-obstante clause and overriding other provisions of the Act, provides for profits and gains from life insurance business to be computed in accordance with the rules contained in the First Schedule to the Act. As per rule 2 of the First Schedule to the Act, profits and gains of life insurance business has to be taken to be the annual average of the surplus arrived at by adjusting the surplus or deficit disclosed by the actuarial valuation made in accordance with the Insurance Act, 1938, in respect of the last inter valuation period ending before the commencement of the assessment year, so as to exclude any surplus or deficit included therein, which was made in any earlier inter valuation period. According this rule as is applicable from A.Y.1977-78, the surplus or deficit between two inter valuation periods disclosed by the actuarial valuation made in accordance with Insurance Act,1938, can only be ta....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cess of the fund over the liability after all other charges are met. The rules which have been quoted lay down two different methods of ascertaining profits. So the annual average of the surplus found by the actuary had to be taken and from it the surplus of the last inter-valuation period had to be deducted as also expenditure allowable under section 10 of the Income Tax Act. This is the basic calculation and they were followed." The Bombay High Court in Life Insurance Corpn. of India (supra) summarised the scope of section 44 of the Act in the following terms:- "... ... It is now well known that so far as the life insurance business is concerned, the computation of the profits has to be made not in the matter in which it is normally done in the case of an ordinary assessee but according to the special and artificial mode prescribed in the First Schedule, having regard to the provisions of s.44 of the I. T. Act, 1961. The effect of s. 44 of the I. T. Act, 1961, is that the provisions relating to interest on securities, income from house property, capital gains and income from other sources are not made applicable in the case of an insurance company and the profit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rence to that year, a balance sheet, a profit and loss account, a separate account of receipts and payments, and revenue account in accordance with the Regulations made by the Authority. Section 13(1) provides that every insurer carrying on life insurance business shall, inter alia, in respect of the life insurance business transacted in India, cause an investigation to be made each year by an actuary into the financial condition of the life insurance business carried on by him, including a valuation of his liabilities and shall cause an abstract of the report of such actuary to be made in accordance with the Regulations laid down in Part I of the Fourth Schedule and in conformity with the requirements of Part II of that Schedule. The fifth proviso to section 13 stipulates that on or after the commencement of the IRDA Act, 1999 every insurer shall cause an abstract of the report of the actuary to be made in the manner specified by the Regulations made by the Authority. In exercise of the powers conferred by section 114A of the Insurance Act, 1938, the IRDA notified the Insurance Regulatory and Development Authority (Actuarial Report and Abstract) Regulations, 2000. Regulat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er's operations. The impact of the consolidated revenue account was transferred to the actuary's valuation balance-sheet in Form I which disclosed the surplus/deficit for the year. (ii) The format for presentation of the insurance accounts was amended by the Regulations of 2000 and by the revised format, the impact of the actuarial valuation was transferred to the revenue account relating to the policyholders for the year and the surplus/deficit was disclosed therein; (iii) The profit and loss for shareholders and the surplus/deficit for policyholders are since segregated after the amended Regulations of 2002 Mumbai Bench of the Tribunal in the case of ICICI Prudential Insurance Co. Ltd. (supra) as relied by learned Senior Advocate discussed these provisions as under:- '27. Respectfully following the above principles and examining the provisions of IT Act, we are of the opinion that the actuarial valuation made in accordance with the Insurance Act, 1938 do mean that the actuarial valuation done in accordance with the Insurance Act, 1938. In arriving at the above decision we have also taken into consideration that Rule-5 in Part-B of the First ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... were only incorporated into the Income Tax Act as far as life insurance business is concerned. Therefore, AO's action in following the format prescribed under the Regulations of IRDA Act is not in accordance with the spirit of Rule-2 and provisions as made applicable under the Income Tax Act. 29. We also notice that the actuarial report and abstracts under the Insurance Act, 1938 has to be prepared vide section 13 of that Act in accordance with the Regulations contained in Part-I of the Fourth Schedule and in conformity with the requirement of Part-II of that schedule. Section 13 of Insurance Act 1938 (as amended now) is as under: "13. Actuarial report and abstract. (i) Every insurer carrying on life insurance business shall, in respect of the life insurance business transacted by him in India, and also in the case of an insurer specified in sub-clause (a)(ii) or sub-clause (b) of clause (9) of section 2 in respect of all life instance business transacted by him, (every year) cause an investigation to be made by an actuary in to the financial condition of the life insurance business carried on by him, including a valuation of his liabilities in respe....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Abstract) Regulations 2000 by which method of preparation of actuaries report and abstracts were prescribed. An actuary is responsible for analysing possible outcomes of the types of events that would potentially cost policy holders to made claims against their insurance policies. Insurance companies need to make sure that the money they are charging and collecting from policy holders is adequate to cover the cost of certain claims that might beneficially be made by policy holders as well as their other expenses. In fact, the work that actuaries perform is crucial to an insurance company's ability to remain in business. Actuaries are involved at all stages in product development and in the pricing risk assessment and marketing of the products. Their job involves making estimates of ultimate out-come of insurable events. In the business of insurance the product cost is an abstraction, depending on the timing issues, variability issues and risk parameters. One big function actuaries provide is making reserves to insure that insurance companies keep enough money on their balance sheets to make good of all the claims they will have to pay. This involves arriving at actuarial surpl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... transactions both under the policyholder's and shareholder's account do pertain to the life insurance business only as it was not permitted to do any other business. Once assessee is in the life insurance business, the computation has to be made in accordance with the Rule-2 as per provisions of section 44. Therefore, there is a valid argument raised by assessee that both the policyholder's and shareholder's account has to be consolidated into one and transfer from one account to another is tax neutral. What AO has done is to tax the surplus after the funds have been transferred from shareholder's account to the policyholder's account at the gross level while ignoring such transfer in shareholder's account, while bringing to tax only the incomes declared in the shareholder's account that too under the head 'other sources of income'. In fact, while giving the finding that assessee is in the life insurance business only and incomes are to be treated as income from life insurance business only and incomes are to be treated as income from life insurance business, the CIT(A) surprisingly in subsequent assessment years appeals accepted AO's co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pugned order holding that the income from shareholder's account is also to be taxed as a part of life insurance business cannot be found fault with in view of the clear mandate of Section 44 of the Act. Accordingly, Question No. 8 also does not raise any substantial question of law. Thus not entertained." 72. The Supreme Court has admitted the special leave petition filed by the Revenue against the judgment of the Bombay High Court, vide decision reported as ICICI Prudential Life Insurance Co. Ltd. (supra) but has not stayed operation of the order of High Court. The learned DR even though tried his best to convince us that we should not follow the decision of Income Tax Appellate Tribunal as approved by Mumbai High Court in the case of ICICI Prudential, but that decision is the only decision of coordinate bench of this tribunal as confirmed by Mumbai High Court has been referred to before us. Although Supreme court admitted SLP, that will not loose the value of binding precedent until the decision is reversed or operation of the order is stayed. But, we noted in respect of the issue whether the income in shareholder account has to be taxed as part of the income of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the case in which such expressions are found and a case is only an authority for what it actually decides." In view of these decisions, the learned DR was of the view that the decision of Mumbai bench of this Tribunal should not be followed by this tribunal in the case of ICICI Prudential Life Insurance Co. Ltd. (supra). We do agree with learned DR that each decision has to be interpreted with the facts and the contents involved there in. We noted that Section 115B(1) (ii) was inserted by Finance Act, 1976 when the condition that life insurance company are not permitted to carry on any other business was reinforced by the provisions of the Section 3(4)(F) of the Insurance Act enabling IRDA to cancel the registration of an insurer if the insurer carried on any business other than life insurance business or any prescribed business. There may be a case that in future government may amend the Act and permit life insurer to carry on other business or there may be a case where insurer, although allowed license for life insurance business but in violation of license, may have carried out any other business but IRDA have not exercise the power of cancelling registration ,under these ci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourt in the case of Radhasoami Satsang Saaomi Bagh (supra) referred to the following passage from Hoystead (supra) wherein it was observed (page 328): "Parties are not permitted to begin fresh litigation because of new view they may entertain of the law of the case, or new versions which they present as to what should be a proper apprehension by the court of the legal result either of the construction of the documents or the weight of certain circumstances. If this were permitted, litigation would have no end, except when legal ingenuity is exhausted. It is a principle of law that this cannot be permitted and there is abundant authority reiterating that principle. Thirdly, the same principle, namely, that of setting to rest rights of litigants, applies to the case where a point, fundamental to the decision, taken or assumed by the Plaintiff and traversable by the Defendant, has not been traversed. In that case also a Defendant is bound by the judgement, although it may be true enough that subsequent light or ingenuity might suggest some traverse which had not been taken." At pg 329 of the judgement, Their Lordships observed as under: "We are awar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee's own case we also hold accordingly. In view of this ground no. 2 of the appeal is allowed. 12. Ground No. 3 is with respect to not considering the surplus actuarial valuation done in accordance with the Insurance Act, 1938 as per old Form No. 1. 13. The ld AR also submitted that this issue also been decided by the coordinate bench for Assessment Year 2010-11 in favour of the assessee and therefore same is also covered. He further submitted the old Form No. 1,, New from No 1 and reconciliation statement thereof. 14. The ld DR vehemently supported the orders of the lower authorities. 15. We have carefully considered the rival contentions and perused the orders of the lower authorities. The ld AO has held that after the commencement of IRDA Act. 1999 and the taxable income should be equivalent to the actuarial valuation as per the new regulation and not as per old From in From No. G, H and I. The ld AO has relied upon the decision of the ld CIT(A) in assessee's own case for Assessment Year 2010-11. The ld CIT(A) also confirmed the action of the ld AO relying upon the order of his predecessor for that year. The order of the ld CIT(A) for Assessment Year 2010-11 trav....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erved/expended on behalf of the policy holder or the assignee. As the term "on behalf of" implies agency relationship and when the benefits are assigned to third parties, insurance company acts as agent of the policy holder. Even otherwise, if we go to the explanatory note as given under para 40.2 of the Circular 202, according to this bonus paid to the policy holder will also be taxed but that is not the case of the Revenue. The Revenue has only contested the bonus declared and the incremental FFA. 89. We also noted that no such disallowance has been made by the Revenue in the earlier assessment years i.e. up to A.Y.2009-10 and it is for the first time that the CIT(A) has enhanced the assessment . We are of the view, even on the ground of consistency, the Revenue cannot discard the consistent and regular method followed for determining the taxable income without there being any change or otherwise, the bonus declared and the incremental FFA has been allowed as deduction by the Revenue. Our aforesaid view is supported by the following decisions." 16. The other years decision of ITAT merely follows this decision. Therefore, as there is no distinction in the fact....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... insurance business as it is part of the actuarial surplus, while learned AR contended that it is not a part of actuarial surplus. As we noted from the Form A-RA this is an unallocated surplus relating to the participating policy holder. In fact, this fund has to be used by assessee in future to meet its contracted obligation towards policy holders. The contention of the learned AR is that this is akin to the policy holders liability which has been determined through due process of the actuarial valuation. If it is part of the liability while working out the actuarial valuation this fund will not form part of the accrual surplus. From provisions of section 44 read with Rule 2 of Schedule A, it is apparent that the profits and gains of a life insurance company has to be computed on the basis of the actuarial surplus. The assessee company is contractually bound in terms of the insurance policies taken out to provide various benefit to its policy holders including, inter alia, survival benefits, cash or reversionary bonuses and other payouts/benefits linked to the happening of future uncertain events. The premiums earned by the assessee, therefore, in our opinion, have embedd....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of leave. The officers are entitled to earned leave calculated at the rate of 2.5 days per month, i.e., 30 days per year. The staff (other than officers) is entitled to vacation leave calculated at the rate of 1.5 days per month, i.e., 18 days in a year. The earned leave can be accumulated upto 240 days maximum while the vacation leave can be accumulated upto 126 days maximum. The earned leave/vacation leave can be encashed subject to the ceiling on accumulation. The officers may at their option avail the accumulated leave or in lieu of availing the leave apply for encashment whereupon they would be paid salary for the period of leave earned but not availed. So does the scheme extend facility of encashment to the staff in respect of vacation leave. Any leave earned beyond the said ceiling limit of 240/126 days cannot be accumulated and goes a waste. It can neither be availed nor encashed. The appellant company has created a fund by making a provision for meeting its liability arising on account of the accumulated earned/vacation leave. In the assessment year 1978- 1979 an amount of Rs. 62,25,483/- was set apart in a separate account as provision for encashment of accrued leave. It....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mers from whom the assessee is getting income by way of premium i.e. whether the amount in FFA a/c is a liability which is deductible while working out acturial surplus. This is an undisputed fact that the assessee cannot utilise these funds for shareholders or distributing them as dividends to the shareholders. On the basis of this decision of Hon'ble SC, one can say that the amount allotted to the FFA a/c is a provision for a definite liability although it may arise when the bonus is distributed out of this. Therefore, since the amount is earmarked for policyholders, it cannot form part of the acturial surplus rather it has to be reduced while working out the actuarial surplus under Rule 2 Schedule A of the Income Tax Act for determining profit and gains of assessee from life insurance business. We have also gone through the decision of Delhi HC in case of Triveni Engg. & Industries Ltd. (supra), as relied by Senior Advocate. This decision in our view will not apply to the facts of the case. In that case, the contract receipts taken as income includes the unbilled revenue for which bills to be raised in succeeding year. Therefore, the provision for forseeable losses ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e as in that case the assessee has departed the amount towards the excise duty liability which is to be discharged in future but in the case of the assessee amount remains with the assessee. We have also gone through decision of Mumbai HC in Nagri Mills Co Ltd. . (supra), as well as Delhi HC in Shriram Pistons & Rings Ltd. (supra), These decisions cannot be applied in the impugned case as these decisions relate to the issue of allowing deduction but does not relate to the issue of computation of actuarial surplus. Whether while computing acturial surplus, amount appropriated towards FFA will form part of acturial liabilities or not. Learned DR basically relied Rule 3 & old Rule 2 which were in existence prior to the amendment made by the Finance Act 1976 and also given the logic as has been mentioned by us earlier why the rate of tax on the company carrying on life insurance business has been reduced from 52.5% to 12.5% as well as para 40.2 of Circular No. 202 dt 05/09/1976 which deals with the Explanatory Notes in respect of the amendment made by Finance Act,1976 as well as the decisions as discussed by us while disposing off ground no. 5. We have already taken a view while dispos....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n done " and though the conveyance had not been executed in favour of the vendee, and the legal title vested with the vendor, the property should be treated as belonging to the vendee and not to the assessee. I had occasion to discuss thoroughly this aspect of the matter with my learned brother and since in view of the position that legal title still vests with the assessee and the authorities, we have noted, are preponderantly in favour of the view that the property should be treated as belonging to the assessee in such circumstances, I shall not permit my doubts to prevail upon me to take the view that the property belongs to the vendee and not to the assessee. I am conscious that it will work some amount of injustice in such a situation because the assessees would be made liable to bear the tax burden in such situations without having the enjoyment of the property in question. But times perhaps are yet not ripe to transmute equity on this aspect in the interpretation of law-much as I would have personally liked to do that. As Benjamin Cardozo has said, "The judge, even when he be free, is not wholly free ". The judge cannot innovate at pleasure. It may be said that the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Ground Nos. 7 & 8 relates to the sustenance of disallowance of Rs. 2,50,00,000/-. made by the Assessing Officer on account of donation paid by the assessee. Ground no. 8 relates to the sustaining disallowance of Rs. 2500/- in respect of share issue expenses. While disposing of ground no. 6 in preceding paragraph, we held that the income of the assessee has to be computed in accordance with Rule 2 of First Schedule provided in S. 44 of the Income Tax Act and the normal provisions of the Income Tax Act relating to the profit and gains of the business will not apply. Section 44 specifically excludes the provisions of computation of the income chargeable under the head "Interest on Securities", "Income from house properties", "capital gain" or "Income from other sources" or in section 199 or in sections 28 to 43B and requires that the profit and gains of any business of insurance has to be computed in accordance with the rules contained in the First Schedule. Section 28 to 43B are applied when the income is computed under the head "Income from business" but in view of section 44 these provisions are not to be applied while computing the profit and gains of business of insurance. The l....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act claiming that the assessee should be allowed. The claim of the assessee is that though donation is disallowable u/s 37(1) of the Act, if it fulfills the condition of the allowability of the donation under chapter VI A of the Act it should be allowed to the assessee. It is submitted that the additional ground is purely technical in nature and alternative claim and therefore, it should be admitted. 25. The ld DR vehemently opposed the admission of the additional ground. 26. We have carefully considered the rival contentions and perused the orders of the lower authorities. All the facts relating to the claim of the assessee are available on record. The assessee is merely raised an alternative claim of deduction. Such ground of appeal can be raised any time of the proceedings. Hence, we admit the same. 27. Adverting to the additional ground the ld AR submitted that identical issue has been decided by the coordinate bench in assessee's own case for Assessment Year 2006-07 in ITA No. 5643/Del/2010 dated 22.04.2019. Similar issue was also decided by the coordinate bench for Assessment Year 2012-13 to 2013-14 as per order dated 14.01.2020. Assessee therefore, submitted the as....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... noted that this issue is duly covered by decision of Mumbai Bench of this Tribunal in case of ICICI Prudential Insurance Co. Ltd. (supra) in which under para 47 while dealing with similar issue following decision of General Insurance Corp of India (supra) by Bombay HC gave clearcut finding that assessee is entitled to exemption u/s 10(34) for the dividend income. We also noted while disposing of ground relating to applicability of S. 14A for disallowance of expenditure in respect of income not forming part of Total Income. This Tribunal Mumbai Bench in the aforesaid case under para 45-46 took the view that since S. 44 creates a specific exception to the applicability of S. 28-43B, therefore purpose object & purview of S. 14A has no apllicability to profits and gains of an insurance business. This decision of co-ordinate Bench is binding on us. The learned DR in this regard although referred to decision of Delhi Tribunal in the case of assessee Asstt. CIT v. Max New York Life Insurance Co. Ltd. [2017] 86 taxmann.com 239/167 ITO 540 (Delhi-Trib.) for AY 2002-03 dt 17/10/2017, we noted Tribunal took the view when the question of application of provision of S. 92 came before it, it to....