2017 (9) TMI 1626

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..... 2011-12 [2016 (9) TMI 1418 - ITAT BANGALORE] we are of the view that surplus/deficit as per shareholders account may be aggregated with surplus/deficit of the policy holders account for determining the income of the assessee u/s. 44 of the Act. The CIT(Appeals) after considering the relevant provisions of the Act has rightly deleted the addition made by the AO. - Decided against revenue - ITA No. .....

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..... e Act ] were issued. In response to the notices, the AR of the assessee appeared from time to time and submitted details as called for. The assessment was completed u/s. 143(3) determining the total income of ₹ 9,37,44,900 wherein the AO has denied the benefit of aggregation of surplus/deficit as per policy holders account to surplus/deficit as per shareholders account. Aggrieved by the asse .....

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..... ibunal in assessee s own case for AY 2011-12 in ITA No.1508/B/2015 allowed the appeal filed by the assessee. Aggrieved by the CIT(Appeals) order, the revenue is in appeal before us. 4. We have heard both the parties and perused the material available on record. The only issue that came up for our consideration is that as per the provisions of section 44 of the Act, for the purpose of computatio .....

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..... taxable income of the assessee u/s. 44 of the IT Act, the assessee contends (i) deficit in the policy holders account should be set off against the surplus as per shareholders account u/s 70 of the IT Act as both constitutes a single business and sec. 70 permits inter unit set off and (ii) the loss of the business of assessee as determined at ₹ 1745.61 crores for earlier years should be car .....

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..... ssee u/s. 44 of the Act. The CIT(Appeals) after considering the relevant provisions of the Act has rightly deleted the addition made by the AO. We do not find any error or infirmity in the order of CIT(Appeals). Hence, we are inclined to uphold the CIT(Appeals) order and dismiss the appeal filed by the revenue. 6. In the result, the appeal by the revenue is dismissed. Pronounced in the open .....

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