CPT V24P7-Art1 (Content).pmd - Taxmann

Direct Tax Laws
12. General Insurance Corpn. of India’s case (supra).
13. Insurance Regulatory and Development Authority (Preparation of Financial Statements and Auditor’s Report
of Insurance Companies) Regulations, 2002, section 3.
14. Insurance Act, 1938, section 10.
15. Ibid
16. Insurance Act, 1938, section 11.
17. Ibid, section 11(1A).
18. Insurance Act, 1938, section 12.
19. Insurance Act, 1938, section 15.
20. Himalaya Assurance Co. Ltd. (supra).
21. Ibid.
22. CIT v. General Eastern Life Insurnace Co. Ltd. [1949] 17 ITR 173 (PC); Scottish Union v. Smiles 2 TC 551.
23. Income-tax Act, 1961, section 2(11).
24. Black’s Law Dictionary, 9th Ed.,P. 1277, A fixed sum paid regularly to a person (or to the person’s beneficiaries),
esp. by an employer as a retirement benefit.
25. Black’s Law Dictionary, 9th Ed., P. 105, an obligation to pay a stated sum, usu. Monthly or annually, to a
stated recipient.
26. Income-tax Act, 1961, First Schedule, Rule 1.
27. A composite insurance company is an insurance company which provides multi-faceted insurance services like
life insurance, marine insurance, fire insurance etc. under the name of a single company.
28. Kanga Palkhiwala & Vyas, The Law and Practice of Income-tax, p. 2600, Lexis NexisButterworthsWadhwa,
Nagpur, 10th Ed., 2010.
29. Swadeshi Bima Co. Ltd. v. CIT [1954] 26 ITR 530 (All.).
30. Ibid.
31. General Family Pension Fund v. CIT [1946] 14 ITR 488 (Cal.); Liverpool & London & Globe Insurance Corpn. v. Bennett,
2 KB 577 (HL). For further information, please refer to Circular No. 22[R Dis No. 51(14) II-47], dated 23 September,
1947.
32. Supra Note 28.
33. CIT v. Prithvi Insurance Co. Ltd. [1967] 63 ITR 632 (SC); Zenith Assurance Co. Ltd. v. CIT [1954] 26 ITR 256 (Bom.).
Refer section 24(2) of the 1922 Income-tax Act.
34. Section 72(1)(i)
35. An actuarial valuation is a type of appraisal which requires making economic and demographic assumptions
in order to estimate future liabilities. The assumptions are typically based on a mix of statistical studies and
experienced judgment. Since assumptions are often derived from long-term data, unusual short-term conditions
or unanticipated trends can occasionally cause problems. http://www.investopedia.com/terms/a/actuarialvaluation.asp,
as accessed on 22nd July, 2012.
36. Insurance Act, 1938, Fourth Schedule, Regulation 3(5).
37. See further, Andhra Insurance Co. Ltd. v. CIT [1937] 5 ITR 697 (Mad.); Calcutta Insurance Ltd. v. CIT [1952] 21
ITR 404 (Cal.) per Chakraarti J.; LIC v. CIT [1978]115 ITR 45 (Bom.); LIC v. CIT [1979] 119 ITR 900 (Bom.).
38. Supra note 28, p. 2608.
39. Income-tax Act, 1961, First Schedule, Rule 2.
40. Calcutta Insurance Ltd. (supra)
41. LIC (supra).
42. B.B. & C.I. Railway Co-operative Mutual Death Benefit Society for India Staff Ltd. (supra); Salem Provident Fund Society
Ltd. v. CIT [1961] 42 ITR 547 (Mad.)
43. Income-tax Act, 1961, First Schedule, Rule 4.
44. Ibid, this rule has superseded the decisions North British & Mercantile Insurance Co., In re [1937] 5 ITR 349 (Cal.)
and Phoenix Assurance Co., In re [1937] 5 ITR 397 (Cal.), which held decisions contrary to the existing rule 4.
45. Calcutta Insurance Ltd. (supra).
46. Income-tax Act, 1961, First Schedule, rule 5.
47. New Asiatic Insurance Co. Ltd. v. CIT [1973] 90 ITR 243 (Delhi); CIT v. United India Fire & General Insurance
Co. Ltd. [1982] 11 Taxman 217 (Mad.); Oriental Fire & General Insurance Co. Ltd. v. CIT [1983] 13 Taxman 68
(Bom.).
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