i miscellaneous insurance business revenue account, ii profit and loss account and profit and loss appropriation account.
The claims paid or payable and the expenses of management were deducted from this revenue account.
to the profit and toss appropriation account.
Benefits and privileges became available as from the first day of the fifth calendar month of registration in respect of Maternity the 13th month and companytinued to be available thereafter so long as the subscriptions were number in arrear.
1,653/ , and after deducting depreciation, he assessed the total income at Rs.
In the statement of the case, the Appellate Tribunal describes the accounts maintained by the assessee thus The assessees published revenue accounts companytained three classifications, viz.
The members were required to pay a monthly premium, but there was a waiting period of four months for all bench its other than maternity, for which the waiting period was one year.
Appeals from the judgment and orders dated September 26, 1961 of the Calcutta High Court in income tax Reference No.
It is number necessary to state the facts regarding other assessment years.
Therefrom, in one year, ended 31st December, 1949, further deduction was made against companytingency reserve and the balance either loss or profit was carried forward.
Regarding the reserve, the Tribunal held that the provision for reserve was number an expense to be deducted from the profits disclosed by the assessee companypany in order to arrive at the profits within the meaning of r. 6, and the Income Tax Officer was entitled to add back the reserve.
Reserve so made were transferred to the balance sheet as credit accounts.
The principal objects for which the Association was established were By means of insurance on the mutual principle to provide, or help towards providing, anywhere in the world for the expense of accommodation and treatment in hospitals and nursing homes and of private nursing for members and their dependants To organise insurance on the mutual principle under Rules and Regulations to be framed for the purpose with the object of providing such hospital, medical, surgical, nursing and allied services as before mentioned, of supporting and assisting hospitals, in Calcutta or elsewhere of relieving members or then dependants, in whole or in part from the payment of hospital and other charges while in receipt of such hospital, medical, surgical, nursing and allied services and of reimbursing and repaying to members or their dependants in whole or in part, all payments for such hospital and other charges which they may have incurred or made which in receipt of such hospital, medical, surgical, nursing and allied services.
The balance of this account being the balance of profit and loss account was transferred.
We may number set out the facts regarding 1949 50 assessment.
1000/ , to the net profit as per profit and loss account, which showed a profit of Rs.
The balance of the miscellaneous insurance business revenue account was transferred to the profit and loss account to the credit of which was further added interest on investments and the debits included provision for taxation, interest on loan, companytribution to provident fund and depreciation.
206 to 210 of 1964.
In the miscellaneous insurance business revenue accounts were included subscriptions from the members, gross premia from the members and from such amounts were deducted general reserve and or companytingency reserve.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
24 of 1957.
The Income Tax Officer for the assessment year 1949 50 added the reserve for taxation, Rs.
Niren De, Additional Solicitor General, Ganapathy Iyer and R.N. Sachthey, for the appellants.
the Calcutta Hospital and Nursing Home Benefits Association Limited, hereinafter referred to as the assessee, is a mutual insurance companycern carrying on miscellaneous insurance business.
The relevant facts and circumstances are as follows The respondent.
These appeals are companycerned with the assessment years 1949 50 to 1953 54 and the relevant accounting years ended on December 31, 1948, December 31, 1949, December 31, 1950, December 31, 1951 and December 31, 1952, respectively.
The Judgment of the Court was delivered by Sikri, J. These appeals by certificate granted by the High Court of Calcutta under s. 66 A 2 of the Indian Income Tax Act, 1922, are directed against the judgment of the said High Court answering two questions referred to it against the Revenue.
Sampat lyengar, B.R.L. Iyengar and D.N. Gupta, for the respondents.
The questions are Whether the profit arising to the assessee companypany from miscellaneous insurance transactions of mutual character was assessable under the Indian Income Tax Act, and If the answer to question No.
1 is in the affirmative, whether on the facts and in the circumstances of the case the balance of the profits as disclosed in the assessee companypanys profit and loss account after deducting the various reserves should be the taxable profits within the meaning of Section 2 6C read with Rule 6 of the Schedule of the Indian Income Tax Act.
