DCIT 14(2)(1), MUMBAI vs. INDIA FIRST LIFE INSURANCE CO.LTD, MUMBAI

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ITA 7276/MUM/2014Status: DisposedITAT Mumbai11 January 2017AY 2010-113 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A)'s finding on the disallowance of loss from the pension fund was fair and reasonable, citing a High Court judgment. Similarly, the CIT(A)'s decision on the treatment of dividend income was also affirmed based on various judicial precedents.

What were the facts?

The Revenue appealed against the CIT(A)'s order which granted relief to the assessee, an insurance company, on two grounds: disallowance of loss from pension fund and treatment of dividend income. The assessee had declared a total loss in its return of income.

What were the issues?

Whether the loss from the pension fund business is allowable and how dividend income should be treated for the computation of income of an insurance business.

Which sections of the Income-tax Act were involved?

Section 10(34),Section 44

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

For Appellant: Shri B.C.S. Naik, CIT-DR
Hearing: 15.12.2016Pronounced: 11.01.2017

O R D E R

PER D. KARUNAKARA RAO, AM:

1.

This appeal filed by the Revenue on 5.12.2014 is against the order of the CIT (A) – 21, Mumbai dated 1.9.2014 for the assessment year 2010-2011. In this appeal, Revenue raised the following grounds which read as under:- “1. On the facts and in the circumstances of the case and in law, the CIT (A) erred in disallowance of loss from pension fund Rs. 18,28,59,480/-.

2. On the facts and in the circumstances of the case and in law, the Ld CIT (A) erred in directing the AO to allow deduction of dividend income Rs. 3,52,584/- other than dividend income earned from pension scheme.”

2. Briefly stated relevant facts of the case are that the assessee is engaged in the business of „life insurance and annuity business‟. Assessee filed the return of income declaring the total loss of Rs. 33,78,80,593/-. Assessment was completed u/s 143(3) of the Act and the assessed income was determined at Rs. NIL which includes certain disallowances made by the AO. Aggrieved, assessee carried the matter in appeal before the CIT (A).

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