M/S THE ORIENTAL INSURANCE CO. LTD.,NEW DELHI vs. DCIT, NEW DELHI

ITA 4535/DEL/2016Status: DisposedITAT Delhi30 June 2021AY 2010-1133 pages
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What did the Tribunal hold?

The Tribunal held that profit on sale/redemption of investments is not taxable in light of a jurisdictional High Court decision. It also deleted the disallowance for provision for standard assets, finding no enabling mechanism for such an addition. The Tribunal directed the AO to consider issues of carry forward of business loss and unabsorbed depreciation.

What were the facts?

The assessee, an insurance company, filed its return declaring a total loss. The Assessing Officer made several additions, including profit on sale of investments and disallowance of depreciation. The CIT(A) granted partial relief, leading to the present appeal by the assessee.

What were the issues?

Whether profit on sale of investments is taxable and whether provision for standard assets is a disallowable expense.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 115JB,Section 32,Section 14A,Section 234B,Section 234D,Section 10(38),Section 111A,Section 112,Section 36(1)(viia),Section 72(1),Section 32(2)

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Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI

Hearing: 04.06.2021Pronounced: 30.06.2021

PER SUDHANSHU SRIVASTAVA, JM:

The present appeal has been filed by the assessee against the order dated 21st June 2016 passed by the Ld. Commissioner of Income Tax (Appeals) – 22, New Delhi {CIT (A for Assessment Year

2010-11. M/s The Oriental Insurance Co. Ltd. vs. DCIT

2.

0 Facts in brief are that for the year under consideration, the assessee had filed the return of income declaring

total loss of Rs 4,44,00,88,739/- and book profit of Rs

83,72,07,564/- under section 115JB of the Income Tax Act, 1961

(hereinafter called ‘the Act’). The return was processed under section 143(1) of the Act. Thereafter, the case was selected for scrutiny assessment u/s 143(3) of the Act and vide order of a

The order continues below.

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