Dismissing the appeal of the revenue the Court held that the provisions of S. \u00a0115JB\u00a0of the\u00a0 Act\u00a0were not applicable to insurance companies. Insurance companies prepared the profit and loss account according to the guidelines issued by the Insurance Regulatory and Development Authority of India and not according to Parts II and III of the\u00a0Companies Act, 1956\u00a0and the applicability of Schedule VI thereto was specifically excluded in respect of the insurance companies. That according to the finding of the Tribunal the contribution of 0.1 per cent. of the gross premium from motor vehicle insurance was done according to the directions given by the Government and the amount had been paid by the assessee as decided by the General Insurance Council. Therefore, the Tribunal was right in rejecting the contention of the Department that the solatium fund had been estimated in a routine manner and was an unascertained liability liable to be disallowed while computing book profits under section\u00a0115JB\u00a0and in holding that the provision made towards contribution to solatium fund was not liable to taxation. Followed CIT v. Bajaj \u00a0Allianz General Insurance co. Ltd. [2016] 76 taxmann.com 308 (Bom)\u00a0 (HC)<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 115JB : Book profit – Insurance company \u2013 Provision is not applicable – Solatium fund – Estimation done according to directions given by Government of India as per decision taken by general Insurance Company \u2014 Not liable to taxation . [ S. 4, 37(1) <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12206","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3aS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12206"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12206\/revisions"}],"predecessor-version":[{"id":12207,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12206\/revisions\/12207"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}