DEPUTY COMMISSIONER OF INCOME TAX, NUNGAMBAKKAM CHENNAI vs. CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LIMITED, CHENNAI

ITA 1438/CHNY/2024Status: DisposedITAT Chennai19 March 2025AY 2011-12Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that reserves for unexpired risks and premium deficiency should not be added back for computing book profits under Section 115JB, as this would defeat the purpose of allowing such deductions under the Act. The CIT(A)'s deletion of these additions was confirmed.

What were the facts?

The case involves cross-appeals by the assessee and the Revenue concerning various assessment years. A key issue is the treatment of reserves for unexpired risks (UPR) and premium deficiency when computing book profits under Section 115JB.

What were the issues?

Whether reserves for unexpired risks and premium deficiency are to be added back for computing book profits under Section 115JB of the Income-tax Act. Whether disallowances for reinsurance premium paid to non-resident reinsurers without TDS are justified.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 37(1),Section 195,Section 40(a)(i)

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Cases cited in this judgment(15)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

आयकर अपीलीय अिधकरण, ‘ए’ "यायपीठ, चे"ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH: CHENNAI "ी एबी टी. वक", "ाियक सद" एवं एवं एवं एवं "ी मनोज कुमार अ"वाल, लेखा सद" के सम" BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER

आयकर अपील सं./ITA Nos.1282, 1283, 1284 & 1285/Chny/2024 िनधा"रण वष"/Assessment Years: 2011-12, 2016-17, 2017-18 & 2018-19

v. M/s. Cholamandalam MS General- The DCIT, Insurance Co. Ltd., Non Corporate Circle-8, Dare House, 2nd Floor, Chennai. No.2, N.S.C. Bose Road, Chennai-600 001. [PAN: AABCC 6633 K] (अपीलाथ"/Appellant) (""यथ"/Respondent)

आयकर अपील सं./ITA Nos.470, 1339, 1438, 1462 & 1463/Chny/2024 िनधा"रण वष"/Assessment Years: 2012-13, 2018-19, 2011-12, 2016-17 & 2017-18

v. The DCIT, M/s. Cholamandalam MS Non Corporate Circle-8, General Insurance Co. Ltd., Dare House, 2nd Floor, Chennai. No.2, N.S.C. Bose Road, Chennai-600 001. [PAN: AABCC 6633 K] (अपीलाथ"/Appellant) (""यथ"/Respondent)

Assessee by : Mr. Sandeep Bagmar, Advocate; Mr. Balachandar, FCA Department by : Mr. Nilay Baran Som, CIT : सुनवाईक"तारीख/Date of Hearing 22.01.2025 : घोषणाक"तारीख /Date of Pronouncement 19.03.2025

ITA No.1282, 1283 to 1285/Chny

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