Allowing the writ against the issue of notice u/s 148 of the Act, the Court held that prior to assessment year 2011-12, profit on sale of investments made by general insurance companies could not be brought to tax. Provision of section 115JB which enables companies to compute book profit are not applicable to insurance companies. Re assessment notice was quashed. (AY. 2008-09)
United India Insurance Co. Ltd. v. Dy. CIT (2021) 282 Taxman 184 (Mad.)(HC)
S. 147 : Reassessment-With in four years-Insurance business-Profit on sale of investments-Prior to assessment year 2011-12 not liable to tax-First Schedule, Rule 5-Provision of section 115JB which enables companies to compute book profit are not applicable to insurance companies-Reassessment notice was quashed. [S. 44, 115JB. 148, Art. 226]