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TMI Blog2018 (11) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 - - - Dated:- 22-11-2018 - Shri Mahavir Singh, Judicial Member And Shri Ramit Kochar, Accountant Member For the Assessee : Shri. C.Naresh For the Revenue : Shri. T.Kipgen(CIT DR) ORDER PER RAMIT KOCHAR, ACCOUNTANT MEMBER: These two appeals, filed by Revenue, being ITA No. 2907 2908/Mum/2017, are directed against two separate appellate orders dated 24th January 2017 and 23rd January 2017 for assessment year(s) 2007-08 and 2009-10 respectively passed by learned Commissioner of Income Tax(Appeals)-4, Mumbai (hereinafter called the CIT(A) ). The proceedings before learned CIT(A) has arisen from two separate order(s) passed by learned Assessing Officer dated 18.03.3014 and 25.03.2015 respectively to give effect to two separate appellate orders passed by learned CIT(A) for AY 2007-08 and 2009-10 respectively. 2. First, we shall take up appeal of the Revenue in ITA no. 2907/Mum/2017 for AY 2007-08 .The grounds of appeal raised by the assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called the tribunal ) read as under:- 1. Whether on the facts and in the circumstances of the case, the ld. CIT(A) wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 1961 Act was reduced to Nil . However , the book profits as is computed u/s 115JB of the 1961 Act were to the tune of ₹ 858.69 crores and the assessee as per AO became liable to pay minimum alternate tax on book profits computed in accordance with the provisions of Section 115JB of the 1961 Act. 4. Aggrieved, the assessee filed first appeal with learned CIT(A). The learned CIT(A) granted relief to the assessee vide appellate order dated 24.01.2017 following the tribunal order in assessee s own case for AY 2005-06 in ITA no. 3002/Mum/2014 dated 03.08.2016. . 5. Aggrieved , the Revenue has filed second appeal with tribunal. The learned DR relied upon the order of the AO while the learned counsel for the assessee relied upon earlier year orders passed by tribunal in assessee s own case in ITA no. 3002/Mum/2014 for AY 2005-06 , order dated 03.08.2016 and order passed by tribunal in ITA no. 1498/Mum/2011 for AY 2001-02, order dated 09.04.2014 . The ld. Counsel for the assessee also relied upon decision of the Kolkatta-tribunal in the case of UCO Bank v. DCIT in ITA no. 1768/Kol./2009 vide orders dated 27-11-2015 wherein one of us being Judicial Member was member of Divis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a large number of judgments of the ITAT, the question has been answered in favour of the Assessee. 55. It is plain, from a reading of Section 44 read with the First Schedule of the Act,that insurance companies are required to prepare accounts as per the IA and the regulations of the IRDA and not as per Parts II and III of Schedule VI of the Companies Act. The Assessee prepares its accounts as per the IRDA principles.The IRDA Regulations govern the preparation of the auditor s report. 56. Consequently, the question framed in ITA No.447/2015 is answered in the affirmative, i.e. in favour of the Assessee and against the Revenue by holding that Section115JB of the Act does not apply to insurance companies. We are reproducing the order of the tribunal for AY 2005-06 in assessee s own case in ITA no. 3002/Mum/2014 , as under: 2. This appeal has been preferred by the assessee before the Ld CIT(A) against the order passed by the AO to give effect to the order passed by the first appellate authority. After giving effect, the total income became a negative figure and hence the AO assessed the total income by adopting book profit computed u/s 115JB of the Act. The Ld CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and interest) granted should be first adjusted against the interest portion that has become due and then the remaining amount, if any, should be adjusted against the tax portion of the refund that has become due. In support of his contentions, the Ld A.R placed reliance on the decision rendered by the Tribunal in the assessee s own case in ITA No.5444 to 5446/Mum/2013 dated 22.12.2014 and also the decision rendered by the Tribunal in the case of Union Bank of India (ITA No.571 574/Mum/2013 dated 23.6.2014). 6. We heard the parties on this issue. Since it is matter involving computation of eligible amount of interest u/s 244A of the Act, we are of the view that this issue requires fresh examination at the end of the AO. In the decisions relied upon by the assessee, the Tribunal has followed the decision rendered by Hon ble Delhi High Court in the case of India Trade Promotion Organisation Vs. CIT (361 ITR 646) and accordingly given direction to the AO to follow the said decision. Consisted with the view taken by the Tribunal, we restore this issue to his file with the direction to examine this issue afresh by following the decision rendered in the case of India Trade Promoti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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