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TMI Blog2021 (3) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... gs to the Central and State Government and the interest thereto also belongs to the Government, and therefore, interest accrued on the corpus fund is required to be added in the corpus fund only. Accordingly, the appeal of the Revenue is dismissed. Disallowance u/s 14A - HELD THAT:- Once the assessee s income is to be computed u/s. 44 which relates to all insurance business which is a non obstante clause, therefore disallowance of Section 14A cannot be made.- Decided against revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The details of such income earned by the assessee right from Assessment Years 2008-09 to 2012-13 as under: Assessment Year 2008-09 2009-10 2010-11 2011-12 2012-13 Opening Balance 8649.09 9277.94 10305.60 10423.50 10327.22 Receipts (from govt.) 0.00 152.53 117.18 3537.88 5029.87 Debit adjustment (272.98) 0.00 (962.20) (4350.21) (14.11) Income share on Corpus fund 901.83 875.13 962.92 716.05 862.47 Closing Balance 9277.94 10305.60 10423.50 10327.22 16205.45 3. Thus, he held that assessee has been earning income from many years and in Assessment Year 2009-10 it has earned ₹ 875.13 lac as income on corpus fund which should have been shown and routed through P&L account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(A) has simply referred to the submissions of the assessee and has deleted the additions without any speaking order. Therefore, the matter should be restored to the file of the ld. CIT(A) for fresh adjudication. 12. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. In support, the ld. counsel for the assessee submitted the letter from Government of India, Ministry of Agriculture, Department Agriculture and Co-operation, which reads as under: "I am directed to say that the funds under the Corpus Fund are provided by the Central and State Governments on 50:50 basis. As the Corpus Fund belongs to the Central and State Government, the interest accrued thereon also belong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central and State Government and the interest thereto also belongs to the Government, and therefore, interest accrued on the corpus fund is required to be added in the corpus fund only. Accordingly, the appeal of the Revenue is dismissed. 7. Now we take up the appeal for the Assessment Year 2014-15 wherein the following grounds have been raised by the Revenue. "1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of ₹ 13,64,83,292/- made by the Assessing Officer on account of income earned on investment of corpus fund. 2. On the facts and in circumstances of the case, the ld. CIT(A) has erred in deleting the addition of ₹ 1,37,35,501/- made by the Assessing Officer on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013-14, this issue has been deleted. 10. We find that this Tribunal after noting the earlier orders of the Tribunal wherein it was held that once the assessee's income is to be computed u/s. 44 which relates to all insurance business which is a non obstante clause, therefore disallowance of Section 14A cannot be made. The relevant observation of the Tribunal reads as under: "We have carefully gone through the order of the coordinate bench in ITA No. 5779/DEL/2015 order dated 09th November 2017. We find that the coordinate bench has followed the earlier order of the coordinate bench in ITA No. 3115/DEL/2013. The relevant findings of the coordinate bench read as under: "We have considered the rival contentions and gone th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contemplates an exception for deductions as allowable under the Act are those contained u/s. 28 to 43B of the Act. Section 44 creates Special application of these provisions in the cases of insurance companies. We, therefore, agree with the assessee and delete the disallowance made by the AO which is based on the application of sec. 14A of the act as according to us, it is not permissible to the AO to travel beyond section 44 and First Schedule of the Income-tax Act. Respectfully following the decision of the ITAT in the case of Oriental Insurance Co. Ltd. (supra), the additional ground raised by assessee is allowed. Accordingly, it is held that the provisions of section 14A are not applicable in the case of assessee. Therefore, the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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