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TMI Blog2019 (9) TMI 1710X X X X Extracts X X X X X X X X Extracts X X X X ..... t by actuarial valuation and further held that income from shareholders account was also to be taxed as a part of life insurance business, there was no substantial question of law arising for consideration . Reference was made to the decision in LIC of India vs. CIT [ 1963 (12) TMI 5 - SUPREME COURT] wherein the Hon'ble Supreme Court has held that the Assessing Officer has no power to modify the account after actuarial valuation is done. Decided against revenue. Disallowance of loss from pension fund - assessee in the computation of income has claimed exemption u/s 10(23AAB) on account of surplus / deficit pension fund - AO disallowed the claim of the assessee and passed the assessment order by adding the amount on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of the assessment completed u/s 143(3) of the Income Tax Act 1961, (the Act ). 2. The grounds of appeal filed by the revenue read as under : 1. Whether on the fact sand in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition made by the assessing officer on account of Surplus disclosed in Form 1 of Actuarial Report ignoring the provision of section 44 r.w.r. 2 of the First Schedule of IT Act, 1961? 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition made by the assessing officer on account of loss from Jeevan Suraksha Fund ignoring settled position of law that income includes loss and that income from Jeevan Sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n assessee s own case for AY 2011-12 in ITA No. 4373/Mum/2015 vide order dated 30.03.2017 held : 6. We have heard the rival submissions and perused the relevant material on record. We begin with 1st, 2nd 3rd ground of appeal as they address a common issue. We find that the Hon'ble Bombay High Court in the case of ICICI Prudential Insurance Co. Ltd. (supra) has held that where assessee was carrying on life insurance business and Tribunal following a decision of Supreme Court, while determining assessee s income under section 44, had taken into consideration total surplus as arrived at by actuarial valuation and further held that income from shareholders account was also to be taxed as a part of life insurance business, there was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue filed appeal against the order of the Tribunal before the High Court. The Hon'ble High Court held that (i) amount set apart by insurance company towards solvency margin as per the direction given by IRDA is to be excluded while computing actuarial valuation surplus, and (ii) pension fund like Jeevan Suraksha Fund would continue to be governed by provisions of section 44 irrespective of the fact that income from such fund is exempted, or not and, therefore, even after insertion of section 10(23AAB), loss incurred from pension fund like Jeevan Suraksha Fund has to be excluded while determining actuarial valuation surplus from insurance business u/s 44 of the Act. We find that the issues in the above grounds of appeal are squar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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