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

ITA 470/CHNY/2024Status: DisposedITAT Chennai19 March 2025AY 2012-1357 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the CESTAT had previously held that motor vehicle dealers did render services to the assessee, overturning the basis of the Assessing Officer's disallowance. Therefore, the issue was set aside to the Assessing Officer to verify with reference to the CESTAT order.

What were the facts?

The assessee, an insurance company, made payments to motor vehicle dealers for arranging finance for customers. The Assessing Officer disallowed these payments, relying on an investigation by the Directorate of Service Tax which suggested no services were rendered. The assessee had challenged the service tax proceedings before the CESTAT.

What were the issues?

Whether payments made to motor vehicle dealers for arranging finance are allowable business expenditure when the basis of disallowance by the AO has been overturned by a higher tribunal.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

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) 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 Mr. Sandeep Bagmar, Advocate; Mr. Balachandar, FCA Department by Mr. Nilay Baran Som, CIT सुनवाईकीतारीख/Date of Hearing 22.01.2025 घोषणाकीतारीख /Date of Pronouncement 19.03.2025 ITA No.1282, 1283 to 1285/

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