The AO made addition to assessee’s income for the provision for doubtful debts in shareholders’ profit and loss account. Tribunal held that S. 44 debars department to apply provisions of S. 28 to 43B while computing profit and gains from an insurance company therefore enhancement made in respect of provision for doubtful debts in shareholders profit and loss account is deleted. (AY .2010 – 2011)
Max New York Life Insurance Co. Ltd. v. Dy.CIT (2018) 191 TTJ 897/ 171 DTR 209 (Delhi)(Trib.)
S. 44: Insurance business – While computing profit and gains from an insurance company enhancement made by revenue in respect of provision for doubtful debts in shareholders profit and loss account, is to be deleted.