NATIONAL INSURANCE COMPANY LIMITED,NEW TOWN vs. DCIT, CIRCLE 5(1),, KOLKATA

ITA 2806/KOL/2025Status: DisposedITAT Kolkata12 February 2026AY 2023-2024Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI RAKESH MISHRA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the excess expenditure incurred by the insurance company, even if exceeding regulatory limits, should be allowed as a deduction under Section 37(1) of the Income Tax Act, 1961. Consequently, the penalty levied under Section 270A was cancelled.

What were the facts?

The assessee, National Insurance Company Limited, incurred expenditure in excess of limits prescribed by IRDA Regulations read with Section 40C of the Insurance Act, 1938. The Assessing Officer disallowed this excess expenditure and also levied penalty under Section 270A.

What were the issues?

Whether expenditure exceeding regulatory limits under the Insurance Act and IRDA Regulations is disallowable under the Income Tax Act, and if such disallowance warrants penalty.

Which sections of the Income-tax Act were involved?

Section 40C,Section 37(1),Section 270A

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Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH AT KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

These four appeals filed by the Assessee are against the separate orders of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AYs 2018-19, 2022-23 & 2023-24 dated 25.09.2025. Since the issues are common or related, all the appeals were heard together and are being decided vide this common order for the sake of convenience and brevity.

2.

The assessee is in appeal before the Tribunal raising the following grounds of appeal: I. ITA No.: 2803/KOL/2025: “1) That the

The order continues below.

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