Surplus with deficit as per shareholders’ account should be aggregated with policyholders’ account

PCIT Vs Assistant Commissioner (Karnataka High Court) Facts- Assessee is engaged in the business of life insurance. AO completed the assessment treating the surplus under shareholders account as income from business and taxed at normal rates. Conclusion- In the case of ICICI Prudential Insurance Company Ltd., identical question having considered, the High Court of Bombay has held that shareholders’ amount has to be considered as arising out of Life Insurance Business. We find no fault with the Tribunal in following this ruling which is squarely applicable to the case on hand. It is not the c...