That question is as under Whether on the fact and in the circumstance of the case,the sum of Rs.23,959/ being the refund of income tax received by the Corporation during the undervaluation period in respect of the income tax upto the assessment year 1956 57 of the life insurance bus insurers of the erstwhile insurers whose business had been taken over by the Corporation, should be allowed as a deflection while companyputing the income of the assessee under Rule 2 1 b of the First Schedule to the Income tax Act, 1961?
The assessee Life Insurance Corporation of India Corporation is a statutory Corporation established under the Life Insurance Corporation Act, 1956 with effect from 1st September, 1956.
During the relevant assessment year, the assessee received refunds of income tax of 3,02,90,898/ in the life insurance business.
The assessee companytended before the Income tax officer that the entire amount of refund was number includable in the revenue account and treated as profits and gains of the assessee for the assessment year under companysideration.
The relevant assessment year is 1963 64 for which the accounting period ended on 31.3.1963.
The Income tax Officer rejected the companytention and included the entire amount in the revenue account.
Commissioner found that this sum of Rs.2,73,50,939/ only had entered into the surplus of the earlier intervaluation period out of Rs.3,02,90,898/ .
3,02,90,898/ included in the revenue account, the sum of Rs.
In the assessees appeal, the Appellate Assistant Commissioner held that out of the amount of Rs.
On the analysis of the refunds and the assets to which they related, the Appellate Asstt.
The assessee as well as the revenue preferred appeals to the Tribunal.
In this appeal, numberfurther reference to the other six questions is necessary.
