CIT v. Oriental Fire & General Insurance Co Ltd.

291 ITR 370Supreme Court of India2007#6588 most cited
18

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2016 to 2026.

Sections most often in play

Section 1961Section 143(3)Section 1938Section 270A of the Income Tax ActSection 37(1) of the Income Tax ActSection 40C of the Insurance ActSection 44Section 44 of the Income Tax Act

Issues it is cited on

section 37bsection 10(15)section 111asection 111section 39section 199interest on securitieswholly and exclusively for businesssection 10(34)prohibited by lawsection 30penalty u/s 270a

Judgments citing CIT v. Oriental Fire & General Insurance Co Ltd.

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

In the result, the appeal filed by the assessee in ITA No

ITA 2806/KOL/2025[2023-2024]Status: DisposedITAT Kolkata12 Feb 2026AY 2023-2024

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 250Section 270ASection 37(1)Section 40C

…not a mere internal allocation or guidance it is a binding legal ceiling. As observed by the Supreme Court in General Insurance Corporation of India v. CIT (1999) 240 ITR 139 (SC), and cited further in CIT v. Oriental Fire & General Insurance Co. Ltd. (2007) 291 ITR 371 (SC), the computation of income for non-life insurers is governed strictly by Section 44 and the First Schedule. However, Rule 5(b), First Schedule explicitly provides that "any expenditure other than expenditure which is not admissible under the provisions of sections 30 to 43B in computing the profits and gains of a business" must be considered…

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

In the result, the appeal filed by the assessee in ITA No

ITA 2804/KOL/2025[2018-2019]Status: DisposedITAT Kolkata12 Feb 2026AY 2018-2019

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 250Section 270ASection 37(1)Section 40C

…not a mere internal allocation or guidance it is a binding legal ceiling. As observed by the Supreme Court in General Insurance Corporation of India v. CIT (1999) 240 ITR 139 (SC), and cited further in CIT v. Oriental Fire & General Insurance Co. Ltd. (2007) 291 ITR 371 (SC), the computation of income for non-life insurers is governed strictly by Section 44 and the First Schedule. However, Rule 5(b), First Schedule explicitly provides that "any expenditure other than expenditure which is not admissible under the provisions of sections 30 to 43B in computing the profits and gains of a business" must be considered…

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

In the result, the appeal filed by the assessee in ITA No

ITA 2803/KOL/2025[2018-2019]Status: DisposedITAT Kolkata12 Feb 2026AY 2018-2019

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 250Section 270ASection 37(1)Section 40C

…not a mere internal allocation or guidance it is a binding legal ceiling. As observed by the Supreme Court in General Insurance Corporation of India v. CIT (1999) 240 ITR 139 (SC), and cited further in CIT v. Oriental Fire & General Insurance Co. Ltd. (2007) 291 ITR 371 (SC), the computation of income for non-life insurers is governed strictly by Section 44 and the First Schedule. However, Rule 5(b), First Schedule explicitly provides that "any expenditure other than expenditure which is not admissible under the provisions of sections 30 to 43B in computing the profits and gains of a business" must be considered…

M/S. THE ORIENTAL INSURANCE CO. LTD.,NEW DELHI vs. ACIT, NEW DELHI

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 2492/DEL/2017[2006-07]Status: DisposedITAT Delhi14 Aug 2025AY 2006-07

Bench: Shri Vikas Awasthy & Shri M. Balaganeshm/S. The Oriental Insurance Co. Ltd, Vs. The Acit, A 25/27, Asaf Ali Road, New Delhi- Circle-16(1), 110003 New Delhi (Appellant) (Respondent) Pan: Aaact0627R Assessee By : Shri Tarandeep Singh, Adv Revenue By: Shri Mahesh Kumar, Cit (Dr) Date Of Hearing 19/05/2025 Date Of Pronouncement 14/08/2025

For Appellant: Shri Tarandeep Singh, AdvFor Respondent: Shri Mahesh Kumar, CIT (DR)
Section 10(38)Section 115JSection 143(3)Section 16Section 44Section 45Section 4A

…ad and doubtful debts and thus decided these cases in favour of assessee and against Revenue. The revenue department‟s appeal in this regard in Civil Appeal Nos. 2741 to 2745 from A.Y. 1974-75 to 1979-80 has been dismissed by Hon'ble Supreme Court reported in 291 ITR 370 (SC). In view of Hon‟ble Apex Court decision, provision of bad and doubtful debt was claimed as M/s. The Oriental Insurance Co. Ltd a deduction. The ld AO completely ignored the claim made by the assessee, while framing the assessment. 18. The ld CIT(A) relied on the note given by the assessee vide Note-7 to Computation of Income, wherein it wa…

DCIT, PUNE vs. BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED, PUNE

In the result, both the appeals filed by the Revenue are dismissed

ITA 654/PUN/2024[2018-19]Status: DisposedITAT Pune29 Oct 2024AY 2018-19

Bench: Shri R. K. Panda & Ms Astha Chandra

For Appellant: Shri Percy Pardiwalla &For Respondent: Shri P R Mane
Section 10(15)Section 10(34)Section 143(1)Section 143(2)Section 14ASection 44

…and he has no general power to correct the errors in the accounts of an insurance business and undo the entries made therein.” 16. Again, the above ratio was laid down by the Hon’ble Apex Court in the case CIT vs. Oriental Fire and General Insurance Co. Ltd., 291 ITR 370 (SC). The ratio that can be culled out from the above referred judgements of the Hon’ble Supreme Court is that notwithstanding anything contained in the provisions of income-tax relating to the computation of chargeable income under head “profits and gains of business”, the profits of life insurance business are to be computed according to Rule 2…

DCIT, PUNE vs. BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED, PUNE

In the result, both the appeals filed by the Revenue are dismissed

ITA 653/PUN/2024[2016-17]Status: DisposedITAT Pune29 Oct 2024AY 2016-17

Bench: Shri R. K. Panda & Ms Astha Chandra

For Appellant: Shri Percy Pardiwalla &For Respondent: Shri P R Mane
Section 10(15)Section 10(34)Section 143(1)Section 143(2)Section 14ASection 44

…and he has no general power to correct the errors in the accounts of an insurance business and undo the entries made therein.” 16. Again, the above ratio was laid down by the Hon’ble Apex Court in the case CIT vs. Oriental Fire and General Insurance Co. Ltd., 291 ITR 370 (SC). The ratio that can be culled out from the above referred judgements of the Hon’ble Supreme Court is that notwithstanding anything contained in the provisions of income-tax relating to the computation of chargeable income under head “profits and gains of business”, the profits of life insurance business are to be computed according to Rule 2…

THE ORIENTAL INSURANCE CO. LTD.,NEW DELHI vs. DCIT, CIRCLE- 1, LTU, NEW DELHI

ITA 1952/DEL/2018[2013-14]Status: DisposedITAT Delhi29 May 2023AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharmaita No. 1952/Del/2018, A.Y. 2013-14 M/S. The Oriental Insurance Co. Vs. Dcit, Ltd. Circle-1, Ltu, A-25/27, Asaf Ali Road, New Delhi New Delhi- 110002 Pan :Aaact0627R

Section 10(38)Section 111ASection 115JSection 143(3)Section 14ASection 32

…ible under the provision of section 30 to 43B would include any amount debited to the P&L account by way of provisions. The appellant has relied on the decision of the Apex Court in the case of M/s Oriental Fire and General Insurance Company Ltd., reported in 291 ITR 370, wherein the Apex Court has held that the provision is deducted from an asset and is made against anticipated losses, while the reserve is an appropriation of profit and remains as proprietors interest in the balance sheet. The Apex Court further held that a provision made for bad and doubtful debts against an anticipated loss, is not an expendit…

DCIT, CIRCLE- 1, LTU, NEW DELHI vs. THE ORIENTAL INSURANCE CO. LTD., NEW DELHI

ITA 1750/DEL/2018[2013-14]Status: DisposedITAT Delhi29 May 2023AY 2013-14

Bench: Sh. Anil Chaturvedi & Sh.Anubhav Sharmaita No. 1952/Del/2018, A.Y. 2013-14 M/S. The Oriental Insurance Co. Vs. Dcit, Ltd. Circle-1, Ltu, A-25/27, Asaf Ali Road, New Delhi New Delhi- 110002 Pan :Aaact0627R

Section 10(38)Section 111ASection 115JSection 143(3)Section 14ASection 32

…ible under the provision of section 30 to 43B would include any amount debited to the P&L account by way of provisions. The appellant has relied on the decision of the Apex Court in the case of M/s Oriental Fire and General Insurance Company Ltd., reported in 291 ITR 370, wherein the Apex Court has held that the provision is deducted from an asset and is made against anticipated losses, while the reserve is an appropriation of profit and remains as proprietors interest in the balance sheet. The Apex Court further held that a provision made for bad and doubtful debts against an anticipated loss, is not an expendit…

ACIT-6(2), KOLKATA vs. M/S NATIONAL INSURANCE CO.LTD., KOLKATA

In the result, the appeal filed by the Revenue is partly allowed for statistical purposes

ITA 498/KOL/2020[2016-17]Status: DisposedITAT Kolkata24 Apr 2023AY 2016-17

Bench: Sri Rajpal Yadav & Dr. Manish Borad

Section 143(2)Section 143(3)Section 14ASection 250

…eme Court as reported in 240 ITR 139 (SC) and he disallowed the sum of Rs.4,22,26,000/-. The assessee further submitted that as per the facts and the decision of the Hon'ble Supreme Court in the case of CIT v. Oriental Fire & General Insurance Co. Ltd. [2007] 291 ITR 371(SC), any amount having been written off, cannot be considered as an expenditure or allowance which could be added back as per the provisions of section 44 read with Rule 5 of the First Schedule. Without prejudice to the submission made hereinabove, the assessee submitted that as per the provisions of section 44 read with Rule 5 of the First Sched…

M/S THE ORIENTAL INSSURANCE CO.LTD.,,NEW DELHI vs. DCIT, NEW DELHI

ITA 200/DEL/2016[2011-12]Status: DisposedITAT Delhi22 Nov 2022AY 2011-12

Bench: Shri Anil Chaturvedi & Shri Anubhav Sharmam/S. The Oriental Insurance Co. Ltd, Vs. The Dcit, A 25/27, Asaf Ali Road, Ltu, New Delhi New Delhi-110002 (Appellant) (Respondent) Pan: Aaact0627R

For Appellant: Shri Tarandeep Singh, AdvFor Respondent: Ms. Sarita Kumari, CIT DR
Section 10(38)Section 115Section 115JSection 143(1)Section 143(2)Section 143(3)Section 14ASection 28Section 44

…roblem and which does not carry more than normal risk attached to the business and such assets is not on NPA. Therefore, the provision for Standard Asset is not even a provision for anticipated losses, referred to in the decision of the Apex Court reported in 291 ITR 370, as the provision in that case, was for bad and doubtful claims, I.e., an anticipated loss. In view of the same, even without considering the amendment to rule 5 and 5(a) w.e.f., 01.04.2011, the facts in the case of the appellant are distinguishable from the two decisions of the Apex Court, relied upon by the appellant. Moreover, since the Act ha…

KAVITA AGARWAL,NEW DELHI vs. ACIT, CENTRAL CIRCLE- 19, NEW DELHI

ITA 5858/DEL/2018[2011-12]Status: DisposedITAT Delhi30 Jun 2021AY 2011-12
Section 10(38)Section 111ASection 112Section 115JSection 143(1)Section 143(3)Section 14ASection 32

…ible under the provision of section 30 to 43B would include any amount debited to the P&L account by way of provisions. The appellant has relied on the decision of the Apex Court in the case of M/s Oriental Fire and General Insurance Company Ltd., reported in 291 ITR 370, wherein the Apex Court has held that the provision is deducted from an asset and is made against anticipated losses, while the reserve is an appropriation of profit and remains as proprietors interest in the balance sheet. The Apex Court further held that a provision made for bad and doubtful debts against an anticipated loss, is not an expendit…

M/S THE ORIENTAL INSURANCE CO. LTD.,,NEW DELHI vs. DCIT, NEW DELHI

ITA 4535/DEL/2016[2010-11]Status: DisposedITAT Delhi30 Jun 2021AY 2010-11
Section 10(38)Section 111ASection 112Section 115JSection 143(1)Section 143(3)Section 14ASection 32

…ible under the provision of section 30 to 43B would include any amount debited to the P&L account by way of provisions. The appellant has relied on the decision of the Apex Court in the case of M/s Oriental Fire and General Insurance Company Ltd., reported in 291 ITR 370, wherein the Apex Court has held that the provision is deducted from an asset and is made against anticipated losses, while the reserve is an appropriation of profit and remains as proprietors interest in the balance sheet. The Apex Court further held that a provision made for bad and doubtful debts against an anticipated loss, is not an expendit…

DCIT (LTU), NEW DELHI vs. M/S. ORIENTAL INSURANCE CO. LTD., NEW DELHI

In the result, the appeal of the revenue is partly allowed

ITA 2671/DEL/2017[2006-07]Status: DisposedITAT Delhi13 Jan 2021AY 2006-07

Bench: Sh. H. S. Sidhudr. B. R. R. Kumar(Through Video Conferencing) Ita No. 2671/Del/2017 : Asstt. Year : 2006-07 Deputy Commissioner Of Vs M/S The Oriental Insurance Co. Income Tax, Circle-1, Ltu, Ltd., A-25/27, Asaf Ali Road, Delhi New Delhi-110002 (Appellant) (Respondent) Pan No. Aaact0627R Assessee By : None Revenue By : Sh. H. K. Chodhary, Cit Dr Date Of Hearing: 06.01.2021 Date Of Pronouncement: 13.01.2021 Order Per Dr. B.R.R. Kumar:

For Appellant: NoneFor Respondent: Sh. H. K. Chodhary, CIT DR
Section 29Section 30Section 43Section 44

…s and gains of business shall be added back. This means that any expenditure or allowance which is not allowable for computation of profit and gains as per section 29 will be added back as per First Schedule as well. The decision of the Apex Court reported in 291 ITR 370 in the case of Oriental Fire and General Insurance Co. Ltd., relied upon by the appellant, made a distinction between a provision and reserve by holding that the provision is a charge against profits and reserve is an appropriation of profit. The Hon'ble Court further held that every provision need not be in the nature of expenditure. This means…

D.C.I.T., CIRCLE - 6(2), KOLKATA , KOLKATA vs. M/S. NATIONAL INSURANCE COMPANY LIMITED , KOLKATA

In the result, the appeal of the Revenue is dismissed

ITA 1030/KOL/2018[2015-16]Status: DisposedITAT Kolkata11 Dec 2019AY 2015-16

Bench: Shri P.M. Jagtap(Kz) & Shri S.S. Godara, Jm] I.T.A. No. 1030/Kol/2018 Assessment Year: 2015-16 Dcit, Circle – 6(2) Kolkata......................................…………………………..........................Appellant P-7, Chowringhee Square, Kolkata – 700 069. Vs M/S. National Insurance Company Ltd....................………………………………………Respondent 3, Commercial Union House, Middleton Street, Kolkata – 700 071. [Pan: Aaacn 9967 E] Appearances By: Shri A.K. Nayak, Cit Appearing On Behalf Of The Revenue. Shri Sanjay Bhattacharya, Ar Appearing On Behalf Of The Assessee. Date Of Concluding The Hearing : November 21, 2019 Date Of Pronouncing The Order : December 11, 2019 Order Per P.M. Jagtap, Vice-(Kz & Hz) This Appeal Is Preferred By The Revenue Against The Order Of Ld. Cit(A) -2, Kolkata Dated 28.03.2018. 2. The Assessee In The Present Case Is A Company Which Is Engaged In Insurance Business. The Return Of Income For The Year Under Consideration Was Filed By It On 30.09.2015 Declaring A Loss Of Rs. 236,55,28,074/-. In The Assessment Completed U/S 143(3) Vide An Order Dated 31.10.2017, The Total Income Of The Assessee Was Determined By The Ao At Rs. 1091,24,39,870/- After Making Additions Inter Alia On Account Of Disallowance Of Written Off Depreciated Investment Amounting To Rs. 1,33,58,000/-, Disallowance Of Amortisation Of Premium Paid On Investment Amounting To Rs. 5,89,11,000/- & Disallowance U/S 14A Read With Rule 8D Amounting To Rs. 62,43,05,014/-. The Book Profit Of The Assessee Company U/S 115Jb Of The Act Was Also Computed By The Ao At Rs.

Section 115JSection 143(3)Section 14ASection 44

…eme Court as reported in 240 ITR 139 (SC) and he disallowed the sum of Rs.4,22,26,000/-. The assessee further submitted that as per the facts and the decision of the Hon'ble Supreme Court in the case of CIT v. Oriental Fire & General Insurance Co. Ltd. [2007] 291 ITR 371(SC), any amount having been written off, cannot be considered as an expenditure or allowance which could be added back as per the provisions of section 44 read with Rule 5 of the First Schedule. Without prejudice to the submission made hereinabove, the assessee submitted that as per the provisions of section 44 read with Rule 5 of the First Sched…

ACIT (LTU), NEW DELHI vs. MAX NEW YORK LIFE INSURANCE COMPANY LTD., NEW DELHI

In the result, the appeal is allowed for statistical purposes

ITA 1768/DEL/2011[2002-03]Status: DisposedITAT Delhi17 Oct 2017AY 2002-03

Bench: Shri R.S. Syal & Shri Sudhanshu Srivastavaassessment Year : 2002-03

For Appellant: Shri M.S. Syali, Sr. Advocate &For Respondent: Shri Amrendra Kumar, CIT, DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : I : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Assessment Year : 2002-03 ACIT (LTU), Vs. Max New York Life NBCC Plaza, Insurance Company Ltd., 3rd Floor, Max House, Pushp Vihar, New Delhi. 1, Dr. Jha Marg, Okhla, New Delhi. PAN: AACCM3201E (Appellant) (Respondent) Assessee By : Shri M.S. Syali, Sr. Advocate & Shri Tarandeep Singh, CA Department By : Shri Amrendra Kumar, CIT, DR Date of Hearing : 11.10.2017 Date of Pronouncement : 17.10.2017 ORDER PER R.S. SYAL, VP: This appeal by the Revenue is directe…

DCIT, CIRCLE -6 KOLKATA, KOLKATA vs. M/S NATIONAL INSURANCE CO. LTD., KOLKATA

In the result, all the appeals of the revenue are dismissed

ITA 983/KOL/2012[2008-2009]Status: DisposedITAT Kolkata05 Aug 2016AY 2008-2009

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Hari Shankar Lal, CITFor Respondent: Shri Sanjay Bhattacharya, FCA
Section 115JSection 143(3)

…btful Debts The brief facts of this issue is that the assessee made provision for doubtful debts in the sum of Rs. 5,12,36,000/-. The ld AO observed that the Hon’ble Apex Court in the case of CIT vs Oriental Fire & General Insurance Co Ltd reported in (2007) 291 ITR 370 (SC) had held that such provision is not to be held as a provision for an expenditure and distinguishing the earlier decision of the Apex Court delivered in the case of State Bank of Patiala reported in 219 ITR 706 (SC) , held that it cannot be disallowed in case of a insurance business where a special provision for taxation is given u/s 44 read…

DCIT, CIRCLE -6 KOLKATA, KOLKATA vs. M/S NATIONAL INSURANCE CO. LTD., KOLKATA

In the result, all the appeals of the revenue are dismissed

ITA 982/KOL/2012[2007-08]Status: DisposedITAT Kolkata05 Aug 2016AY 2007-08

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Hari Shankar Lal, CITFor Respondent: Shri Sanjay Bhattacharya, FCA
Section 115JSection 143(3)

…btful Debts The brief facts of this issue is that the assessee made provision for doubtful debts in the sum of Rs. 5,12,36,000/-. The ld AO observed that the Hon’ble Apex Court in the case of CIT vs Oriental Fire & General Insurance Co Ltd reported in (2007) 291 ITR 370 (SC) had held that such provision is not to be held as a provision for an expenditure and distinguishing the earlier decision of the Apex Court delivered in the case of State Bank of Patiala reported in 219 ITR 706 (SC) , held that it cannot be disallowed in case of a insurance business where a special provision for taxation is given u/s 44 read…

DCIT, CIRCLE -6 KOLKATA, KOLKATA vs. M/S NATIONAL INSURANCE CO. LTD., KOLKATA

In the result, all the appeals of the revenue are dismissed

ITA 674/KOL/2012[2005-06]Status: DisposedITAT Kolkata05 Aug 2016AY 2005-06

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

For Appellant: Shri Hari Shankar Lal, CITFor Respondent: Shri Sanjay Bhattacharya, FCA
Section 115JSection 143(3)

…btful Debts The brief facts of this issue is that the assessee made provision for doubtful debts in the sum of Rs. 5,12,36,000/-. The ld AO observed that the Hon’ble Apex Court in the case of CIT vs Oriental Fire & General Insurance Co Ltd reported in (2007) 291 ITR 370 (SC) had held that such provision is not to be held as a provision for an expenditure and distinguishing the earlier decision of the Apex Court delivered in the case of State Bank of Patiala reported in 219 ITR 706 (SC) , held that it cannot be disallowed in case of a insurance business where a special provision for taxation is given u/s 44 read…