financial year
2006-07. The assessee has valued the liability on actuarial valuation
certificate issued by consulting Actuary, after due consideration of
provisions/rules ... company for retirement benefit scheme, guidance
note issued by the actuarial society of India and accounting standard-15
of Institute of Chartered Accountants of India
income was to be computed taking into account the surplus of
the actuarial valuation done in accordance with the Insurance Act .
1938 as represented ... Funds for Future Appropriation ("FFA") as part of
the actuarial surplus being liable to tax under Section 44 read with
Rule
deduction of annuity and lump sum benefits to the employees on actuarial basis, which were disallowed by the ITO. At the outset it was pointed ... books for this liability. It was also mentioned by him that the actuarial calculations for claim of liability on account of annuity and lump
allow ing
adjustment from the 'surplus' worked as per "actuarial
valuation" (and as shown by the assessee in Form ... Account and shown as
part of 'surplus' in the "actuarial valuation" was only transfer of
capital asset and not taxable
negative reserve of Rs.51.34 crores as per report
of Actuary,that the figure of incremental negative reserve for the year under consideration ... impact of reducing taxable surplus as
Form-I i.e.of the (Actuarial Report).After considering the submission of the assessee,the AO held
that
holding the same to be in the nature
of adjustment to the actuarial valuation ignoring the fact that there was no
such adjustment but merely ... attempt on the part of the Assessing Officer to disturb the
actuarial valuation given by actuary."
5. The appellant prays that the order
than sec. 44.
6) The CIT (A) erred in holding that the actuarial
surplus determined for the purpose of the Insurance
Act must ... average
surplus' arrived by adjusting the surplus disclosed in the
actuarial valuation made with regard to the Insurance Act, 1938
in respect of inter
Company on 12-6-1980.
A reference was made to the Actuary who sent his report on 22-6-1981 in which he stated that ... received by the assessee-company some time thereafter. The Actuary worked out the amount payable to each of the 255 workers in an Annexure
made on account of claim of 100% depreciation,
ignoring the fact that Actuarial surplus is determined on
the basis of the total Assets ... considered as part of income of
life insurance business by the actuary, without
appreciating the fact that this decision
order of Ld.
CIT(A) holding that surplus disclosed in the actuarial report in
form 1 can be charged by way of adjustment whereas ... only be considered as 'legislation
by incorporation'.
27. 'actuarial valuation made in accordance with the Insurance Act, 1938 ' do
mean that
