DEPUTY COMMISSIONER OF INCOMETAX , CHENNAI vs. CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LIMITED, CHENNAI

ITA 1463/CHNY/2024Status: DisposedITAT Chennai19 March 2025AY 2017-1857 pages
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What did the Tribunal hold?

The Tribunal found that the CESTAT had previously ruled in favour of the assessee in a related service tax matter, establishing that services were indeed rendered by the motor vehicle dealers. Therefore, the AO's disallowance based on the Service Tax report was incorrect.

What were the facts?

The assessee, an insurance company, appealed against disallowances made by the Assessing Officer (AO) regarding payments to motor vehicle dealers. The AO's disallowance was based on a Service Tax Directorate report suggesting no services were rendered.

What were the issues?

Whether payments made to motor vehicle dealers for services rendered are allowable as a deduction, and if the AO's disallowance based on a Service Tax investigation was justified.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 40(a)(i)

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Cases cited in this judgment(12)Show list

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आयकर अपीलीय अधिकरण, 'ए' न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL 'A' BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिक सदस्य एवं श्री मनोज कुमार अग्रवाल, लेखा सदस्य के समक्ष 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 निर्धारण वर्ष/Assessment Years: 2011-12, 2016-17, 2017-18 & 2018-19 M/s. Cholamandalam MS General Insurance Co. Ltd., Dare House, 2nd Floor, No.2, N.S.C. Bose Road, Chennai-600 001. v.

The DCIT, Non Corporate Circle-8, Chennai. [PAN: AABCC 6633 K] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) आयकर अपील सं./ITA Nos.470, 1339, 1438, 1462 & 1463/Chny/2024 निर्धारण वर्ष/Assessment Years: 2012-13, 2018-19, 2011-12, 2016-17 & 2017-18 The DCIT, Non Corporate Circle-8, Chennai. (अपीलार्थी/Appellant) v. M/s. Cholamandalam MS General Insurance Co. Ltd., Dare House, 2nd Floor, No.2, N.S.C. Bose Road, Chennai-600 001. [PAN: AABCC 6633 K] (प्रत्यर्थी/Respondent)

Assessee by Department by : Mr. Sandeep Bagmar, Advocate; Mr. Balachandar, FCA : Mr. Nilay Baran Som, CIT सुनवाईकीतारीख/Date of Hearing : 22.01.2025 घोषणाकीतारीख /Date of Pronouncement : 19.03.2025 ITA No.1282, 12

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