TaxTMI 
TaxTMI 
2025 (8) TMI 120
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....section 37 of the Act do not apply to life Insurance Companies which are governed by the specific provisions prescribed under section 44 read with First schedule to the Act and the normal provisions of the Act are not applicable to the Appellant. 1.1 Without prejudice to Ground no. 1 above, the Hon'ble CIT(A)/Ld. AO erred in not allowing the deduction under section 80G of the Act during the previous relevant to the subject year. 2. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not allowing exemption amounting to INR 4,09,87,171 allowable to the Appellant in accordance with provisions of the section 10(15)(iv)(h) of the Income Tax Act, 1961 on account of interest income earned by the Appellant from specified investments in the course of carrying on its business of life insurance business. 2.1. That on the facts and circumstances of the case and in law, the Hon'ble CIT(A) erred in interpreting the decision of Hon'ble Supreme Court in the case of Goetze India Ltd v CIT: [2006] 157 Taxman 1 and holding that the claim cannot be entertained at the appellate level if the same was not made in the original return o....
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....G certificates issued by the Donee to the assessee within one month of this order. The learned assessing officer may verify the detail in accordance with the law and if found proper, may grant the deduction. Accordingly the 2nd additional ground of the appeal of the assessee is allowed with above direction." 8. Respectfully following the same, we set aside the issue of deduction u/s 80G to the file of the AO for verification with same direction that as the requisite details as required by section 80G has not been furnished before us, the assessee shall furnish the relevant information before the AO to claim deduction under section 80G of the Income Tax Act along with all donation receipts and the 80G certificates issued by the Donee to the assessee within one month of this order. The Assessing Officer shall verify the detail in accordance with the law and if found proper, may grant the deduction. We accordingly allow the ground 1.1 with the above direction. 9. Facts relating to Ground No. 2 are that during the year under consideration, the assessee earned a total interest of Rs. 4,09,87,171/- on the investments in Rural Electrification Corporation Limited, India Infrastructur....
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....ilable in the audited balance sheet and was before the assessing officer. Further, we find from the recent decision of the Hon'ble Bombay High Court cited by the ld AR in the case of Siva Equipment (P.) Ltd. v. ACIT [2020] 423 ITR 20 (Bombay) which held that a taxpayer is entitled to raise not merely additional legal submissions before the appellate authorities but is also entitled to raise additional claims before the appellate authorities. In view of the above, we admit the additional ground raised. 14. We are of the considered view that the though the facts of the investments in PSU Bonds and debentures are available in the audited accounts, the assessing officer needs to examine the same with regard to the eligibility of assessee's claim considering the eligibility criteria laid down in section 10(15)(iv)(h). For this purpose, we find it fit to set aside this issue to the file of the assessing officer for examining the claim of the assessee. Where the claim made is as per the law, the same should be allowed. The additional ground is allowed for statistical purpose." 12. Respectfully following the same, we set aside the issue of exemption u/s 10 (15)(iv)(h) of th....
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....ing total income by ignoring that the provisions of Rules contained in the first schedule stipulate for taxation of actuarial surplus as determined by IRDA regulation and not under other provisions of the Act? 4 Whether the Ld. CIT(A) has erred both in law and facts by deleting the addition of Rs 7,14,54,500/- on account of expenditure incurred towards dividend income clamed as exempt u/s 10(34) of the Act? 5. The appellant craves leave to, add to, alter, amend or vary from the above grounds of appeal at or before the time of hearing. 15. Ground no 1 relates to the taxability of the assessee life insurance business and it being governed under specific provisions prescribed under Section 44 read with the First Schedule to the Act and that normal provisions from section 28 to 43B of the Act are not applicable on the assessee. We find that the issue is covered by the ITAT order in the assessee's own case for AY 2010-11 and AY 2015-16 & AY 2016-17. The ITAT in the AY 2010-11 held as under: "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 ....
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....ng the decision of this Tribunal in the case of ICICI Prudential Insurance Co. Ltd. (supra), set aside the order of CIT(A) on this issue and direct the assessing officer to take profit shown in shareholders' profit and loss account i.e. Form A-PL to be part of the income derived from life insurance business. Thus these grounds are allowed. Respectfully following the ITAT decision in AY 2010-11, the ground no 1 is dismissed. 16. Ground no 2 relating to Profit on sale of investments being treated as income from insurance business, we find that the same has been decided in favour of the assessee by the ITAT in its own case in AY 2006-07 to AY 2016-17. The ITAT in AY 2007-08 and 2009-10 held as under: "8. Following the decision rendered by the coordinate Bench of the Tribunal for AY 2006-07 in assessee's own case (supra), we are of the considered view that investment made by the assessee are part and parcel of insurance business and the assessee has rightly treated the income from sale of investment as part of business of insurance. Moreover, in 2005-06, the Revenue itself has decided this issue in favour of the assessee by holding that profit and loss arising fr....