Oriental Insurance Co. Ltd. v. DCIT

407 ITR 658High Court2018#6090 most cited

What is Oriental Insurance Co. Ltd. v. DCIT authority for?

Income earned on sale or redemption of investments made by an insurance company is not necessarily business income and may be eligible for exemptions, even if the department contends the investments are stock-in-trade. The applicability of CBDT Circular No. 528 needs examination in such cases.

19

judgments rely on this decision, according to BharatTax’s citation analysis of 366,315 Indian tax judgments — from 2019 to 2026.

Also referred to as

Oriental Insurance Co. Ltd. v. DCIT · 407 ITR 658 · section 10(38) · exemption on sale of investments · stock in trade · business income · CBDT Circular No. 528 · long-term capital asset · capital gains exemption · insurance company investments

Sections most often in play

Section 10(38)Section 10(15)Section 115JBSection 148Section 14ASection 44Section 10(34)Section 8D
Read the full judgment

Issues it is cited on

section 10(15)section 37bsection 111asection 111sanction under section 151long-term capital assetsection 199interest on securitiessection 10(34)beyond four yearssection 30section 10(38)

Judgments citing Oriental Insurance Co. Ltd. v. DCIT

Royal Sundaram General Insurance Company Ltd, Chennai vs. DCIT, Ltu, Chennai

In the result, appeals filed by the assessee are allowed

ITA 91/CHNY/2018[2012-13]Status: DisposedITAT Chennai02 Jan 2026AY 2012-13

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Vikaram VijayaraghavanFor Respondent: Mr.R. Raghupathy, Addl.CIT
Section 115J

…considered the submissions and noted that the applicability of the provisions of Schedule VI of the Companies Act was excluded in respect of the insurance companies. 10. In the decision in the case of Oriental Insurance Co. Ltd. Vs. DCIT [reported in (2018) 407 ITR 658], an Identical question was considered by the High Court of Delhi wherein it was held as follows: "54. Turning now to ΙTΑ Να. 447/2015, the question concerns the applicability of Section 115 of the Act to insurance companies The ITAT has permitted the assessee to raise this question since, in a large number of judgments of the ITAT, the question…

Royal Sundaram General Insurance Company Ltd, Chennai vs. DCIT, Ltu, Chennai

In the result, appeals filed by the assessee are allowed

ITA 89/CHNY/2018[2011-12]Status: DisposedITAT Chennai02 Jan 2026AY 2011-12

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Vikaram VijayaraghavanFor Respondent: Mr.R. Raghupathy, Addl.CIT
Section 115J

…considered the submissions and noted that the applicability of the provisions of Schedule VI of the Companies Act was excluded in respect of the insurance companies. 10. In the decision in the case of Oriental Insurance Co. Ltd. Vs. DCIT [reported in (2018) 407 ITR 658], an Identical question was considered by the High Court of Delhi wherein it was held as follows: "54. Turning now to ΙTΑ Να. 447/2015, the question concerns the applicability of Section 115 of the Act to insurance companies The ITAT has permitted the assessee to raise this question since, in a large number of judgments of the ITAT, the question…

Royal Sundaram General Insurance Company Ltd, Chennai vs. DCIT, Ltu, Chennai

In the result, appeals filed by the assessee are allowed

ITA 88/CHNY/2018[2010-11]Status: DisposedITAT Chennai02 Jan 2026AY 2010-11

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.Vikaram VijayaraghavanFor Respondent: Mr.R. Raghupathy, Addl.CIT
Section 115J

…considered the submissions and noted that the applicability of the provisions of Schedule VI of the Companies Act was excluded in respect of the insurance companies. 10. In the decision in the case of Oriental Insurance Co. Ltd. Vs. DCIT [reported in (2018) 407 ITR 658], an Identical question was considered by the High Court of Delhi wherein it was held as follows: "54. Turning now to ΙTΑ Να. 447/2015, the question concerns the applicability of Section 115 of the Act to insurance companies The ITAT has permitted the assessee to raise this question since, in a large number of judgments of the ITAT, the question…

DCIT Cen 5 3, Mumbai vs. Icici Lombard General Insurance Co. Limited, Mumbai

In the result, appeals of the Revenue are allowed partly

ITA 1682/MUM/2025[2017-18]Status: DisposedITAT Mumbai26 Sept 2025AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Anish Thackar
Section 10(15)Section 10(34)Section 10(38)Section 148Section 148ASection 44

…submitted as under: and submitted as under: “3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for A.Y. 2005-06 407 ITR 658 (Delhi), the income 06 407 ITR 658 (Delhi), the income-tax department had tax department had contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes stock in trade and as such being business income cannot be stock i…

DCIT Cen 5 3, Mumbai vs. Icici Lombard General Insurance Co. Limited, Mumbai

In the result, appeals of the Revenue are allowed partly

ITA 1681/MUM/2025[2016-17]Status: DisposedITAT Mumbai26 Sept 2025AY 2016-17

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Anish Thackar
Section 10(15)Section 10(34)Section 10(38)Section 148Section 148ASection 44

…submitted as under: and submitted as under: “3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for A.Y. 2005-06 407 ITR 658 (Delhi), the income 06 407 ITR 658 (Delhi), the income-tax department had tax department had contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes stock in trade and as such being business income cannot be stock i…

DCIT Cen 5 3, Mumbai vs. Icici Lombard General Insurance Co. Limited, Mumbai

In the result, appeals of the Revenue are allowed partly

ITA 1680/MUM/2025[2015-16]Status: DisposedITAT Mumbai26 Sept 2025AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Anish Thackar
Section 10(15)Section 10(34)Section 10(38)Section 148Section 148ASection 44

…submitted as under: and submitted as under: “3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for A.Y. 2005-06 407 ITR 658 (Delhi), the income 06 407 ITR 658 (Delhi), the income-tax department had tax department had contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes stock in trade and as such being business income cannot be stock i…

DCIT Cen 5 3, Mumbai vs. Icici Lombard General Insurance Co. Limited, Mumbai

In the result, appeals of the Revenue are allowed partly

ITA 1679/MUM/2025[2012-13]Status: DisposedITAT Mumbai26 Sept 2025AY 2012-13

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan ()

For Appellant: Mr. Anish Thackar
Section 10(15)Section 10(34)Section 10(38)Section 148Section 148ASection 44

…submitted as under: and submitted as under: “3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for 3.20 In the case of Oriental Insurance Corporation Ltd. (OICL) for A.Y. 2005-06 407 ITR 658 (Delhi), the income 06 407 ITR 658 (Delhi), the income-tax department had tax department had contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes contended that investments of the assessee company constitutes stock in trade and as such being business income cannot be stock i…

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

…after denying the claim of exemption u/s 10(38) of the Act. 5. We find this is a legacy issue being carried over from earlier years. The Hon‟ble Jurisdictional High Court in assessee‟s own case for AY 2005-06 reported M/s. The Oriental Insurance Co. Ltd in 407 ITR 658 (Del) vide order dated 30.08.2017 had addressed the very same issue. The questions raised before the Hon‟ble Delhi High Court was as under: –  Whether the ITAT was correct in law in holding that the income earned on sale/ redemption of investment is chargeable to tax? 6. The Hon‟ble High Court observed as under:- “30. Since the Assessee's cas…

Assistant Commissioner of Income Tax, C. R Building vs. The Oriental Insurance Co Ltd., Asaf Ali

In the result, the cross objections filed by the assessee are partly allowed for statistical purposes

ITA 3218/DEL/2023[2018-19]Status: DisposedITAT Delhi09 Apr 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shris.Rifaur Rahmanacit, Circle 10 (1), Vs. The Oriental Insurance Co. Ltd., New Delhi. A-25/27, Oriental House, Asaf Ali Road, Delhi Gate, New Delhi – 110 002. (Pan : Aaact0927R) Co No.152/Del/2023 (In Ita No.3218/Del/2023) (Assessment Year: 2018-19) The Oriental Insurance Co. Ltd., Vs. Acit, Circle 10 (1), A-25/27, Oriental House, New Delhi. Asaf Ali Road, Delhi Gate, New Delhi – 110 002. (Pan : Aaact0927R) (Appellant) (Respondent) Assessee By : Shri Tarandeep Singh, Advocate Shri Sandeep Yadav, Advocate Revenue By : Ms. Baljeet Kaur, Cit Dr Date Of Hearing : 23.01.2025 Date Of Order : 09.04.2025 O R D E R Per S. Rifaur Rahman: 1. The Revenue Has Filed Appeal Against The Order Of The Learned Commissioner Of Income Tax (Appeals)/National Faceless Appeal Centre

For Appellant: Shri Tarandeep Singh, AdvocateFor Respondent: Ms. Baljeet Kaur, CIT DR
Section 10Section 10(38)Section 115JSection 14ASection 44

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER and SHRIS.RIFAUR RAHMAN, ACCOUNTANT MEMBER ACIT, Circle 10 (1), vs. The Oriental Insurance Co. Ltd., New Delhi. A-25/27, Oriental House, Asaf Ali Road, Delhi Gate, New Delhi – 110 002. (PAN : AAACT0927R) CO No.152/Del/2023 (in ITA No.3218/DEL/2023) (Assessment Year: 2018-19) The Oriental Insurance Co. Ltd., vs. ACIT, Circle 10 (1), A-25/27, Oriental House, New Delhi. Asaf Ali Road, Delhi Gate, New Delhi – 110 002. (PAN : AAACT0927R) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Tarandeep Singh, Advocat…

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

…ce business therefore, section 40 of the Act is not applicable and the general section 28 of the Act will come into action. The ld AO has considered the investments of the assessee as stock in trade. However, in assessee’s own case for AY 2005-06, reported in 407 ITR 658 (Del) Hon’ble High Court has held such assets to be , "floating assets” and observed in para 25 to 29 as below:- “25. Section 27B (1) of the IA mandates that no insurer carrying on general insurance business shall "invest or keep invested any part of his assets otherwise than in any of the following approved investments." These 'approved investme…

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

…ce business therefore, section 40 of the Act is not applicable and the general section 28 of the Act will come into action. The ld AO has considered the investments of the assessee as stock in trade. However, in assessee’s own case for AY 2005-06, reported in 407 ITR 658 (Del) Hon’ble High Court has held such assets to be , "floating assets” and observed in para 25 to 29 as below:- “25. Section 27B (1) of the IA mandates that no insurer carrying on general insurance business shall "invest or keep invested any part of his assets otherwise than in any of the following approved investments." These 'approved investme…

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

…ce business therefore, section 40 of the Act is not applicable and the general section 28 of the Act will come into action. The ld AO has considered the investments of the assessee as stock in trade. However, in assessee‟s own case for AY 2005-06, reported in 407 ITR 658 (Del) Hon‟ble High Court has held such assets to be , "floating assets” and observed in para 25 to 29 as below:- “25. Section 27B (1) of the IA mandates that no insurer carrying on general insurance business shall "invest or keep invested any part of his assets otherwise than in any of the following approved investments." These 'approved investme…

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

…tments is exempt from tax is a legacy issue. In earlier years too similar additions were made by the lower authorities and the matter now stands settled by the decision of the Hon’ble Jurisdictional High Court in case of assessee for AY 2005- 06 reported in 407 ITR 658 (Del). M/s The Oriental Insurance Co. Ltd. vs. DCIT 4.2 The Ld. CIT (DR), on the other hand, has not been able to controvert this and has relied upon the orders passed by the lower authorities making / sustaining the addition. 5.0 We have carefully considered the facts of the case and the material available on record. It is observed that the…

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

…tments is exempt from tax is a legacy issue. In earlier years too similar additions were made by the lower authorities and the matter now stands settled by the decision of the Hon’ble Jurisdictional High Court in case of assessee for AY 2005- 06 reported in 407 ITR 658 (Del). M/s The Oriental Insurance Co. Ltd. vs. DCIT 4.2 The Ld. CIT (DR), on the other hand, has not been able to controvert this and has relied upon the orders passed by the lower authorities making / sustaining the addition. 5.0 We have carefully considered the facts of the case and the material available on record. It is observed that the…

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

…ble Court concurred with the view taken by the revenue. The ld. CIT DR explained in detail about the issue and the order of the Hon’ble Jurisdictional High Court. 5. The relevant part of the order of the Hon’ble High Court in case of the assessee reported in 407 ITR 658 is as under: “On the disallowance of investments written off 50. The disallowance of the investments written off is the subject matter of the Revenue's ITA No. 448/2015. The ITAT has in the impugned order while setting aside the disallowance, followed its decision for AYs 2000-01 and 2001- 02. The ITAT held that the guidelines issued by the GIC…

DCIT (Ltu), New Delhi vs. M/S. the Oriental Insurance Co. Ltd., New Delhi

In the result, the grounds raised by the Revenue are dismissed

ITA 6280/DEL/2016[2009-10]Status: DisposedITAT Delhi31 Aug 2020AY 2009-10

Bench: Shri R.K. Panda & Shri Amit Shukla

For Appellant: Shri Tarandeep Singh AdvocateFor Respondent: Shri H.K. Choudhary CIT-DR
Section 10(38)Section 115JSection 14Section 143(3)Section 14ASection 44

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA. No.6133/DEL/2016 Assessment Years 2009-10 The Oriental Insurance Co. Ltd. vs. DCIT (LTU) A 25/27, Asaf Ali Road, New Delhi. New Delhi. PAN: AAACT0627R (Appellant) (Respondent) & ITA. No.6280/DEL/2016 Assessment Years 2009-10 DCIT (LTU) vs. The Oriental Insurance Co. Ltd. Circle-1, A-25/27, Asaf Ali Road, NBCC Plaza Pushp Vihar, New Delhi. New Delhi. PAN No. AAACT0627R (Appellant) (Respondent) Appellant by: Shri Tarandeep Singh Advocate Respondent by: Shri H.K. C…

M/S the Oriental Insurance Co. Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, the grounds raised by the Revenue are dismissed

ITA 6133/DEL/2016[2009-10]Status: DisposedITAT Delhi31 Aug 2020AY 2009-10

Bench: Shri R.K. Panda & Shri Amit Shukla

For Appellant: Shri Tarandeep Singh AdvocateFor Respondent: Shri H.K. Choudhary CIT-DR
Section 10(38)Section 115JSection 14Section 143(3)Section 14ASection 44

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER & SHRI AMIT SHUKLA, JUDICIAL MEMBER ITA. No.6133/DEL/2016 Assessment Years 2009-10 The Oriental Insurance Co. Ltd. vs. DCIT (LTU) A 25/27, Asaf Ali Road, New Delhi. New Delhi. PAN: AAACT0627R (Appellant) (Respondent) & ITA. No.6280/DEL/2016 Assessment Years 2009-10 DCIT (LTU) vs. The Oriental Insurance Co. Ltd. Circle-1, A-25/27, Asaf Ali Road, NBCC Plaza Pushp Vihar, New Delhi. New Delhi. PAN No. AAACT0627R (Appellant) (Respondent) Appellant by: Shri Tarandeep Singh Advocate Respondent by: Shri H.K. C…

General Insurance Corporation of India, Mumbai vs. Asst CIT 3(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1080/MUM/2019[2011-12]Status: DisposedITAT Mumbai30 Mar 2020AY 2011-12
Section 10Section 10(15)(i)Section 10(34)Section 10(38)Section 143(3)Section 199Section 44

…visions of the Act shall continue to apply on the transactions involving transfer of shares and securities. 3.14.1. The ld AR further drew our attention to the decision of Hon’ble Delhi High Court in the case of Oriental Insurance Co. Ltd vs DCIT reporte din 407 ITR 658 (Del) wherein at pages 666 and 667 thereon, the Hon'ble High Court had held that in view of the strict restrictions imposed on Insurance Companies by the Insurance Act, it is not open to a company carrying on general insurance business to treat any part of its investments as “stock-in-trade”. Hence at any stretch of imagination, the investments h…

The Oriental Insurance Co. Ltd., New Delhi vs. DCIT (Ltu), New Delhi

In the result, appeal of the assessee is allowed

ITA 3540/DEL/2016[2008-09]Status: DisposedITAT Delhi26 Mar 2019AY 2008-09

Bench: Shri G.D. Agarwal & Shri K.Narasimha Charyassessment Year: 2008-09 M/S Oriental Insurance Co. Ltd. Vs Dcit (Ltu) A 25/27, Asaf Ali Road, New Delhi. New Delhi. Pan: Aaact0627R

Section 115JSection 143(3)Section 14ASection 40Section 40a

…s case for the AY 2011-12 passed on 16.11.2005 in Appeal No.40/13-14/CIT(A)-22 dismissed this appeal. 3 5. Learned AR submitted that this ground is no longer res integra and the Hon’ble jurisdictional High Court in the case of the assessee reported in (2018) 407 ITR 658 (Del) decided this issue in favour of the assessee. We have gone through the order. Vide para 34, the Hon’ble High Court observed that the current clause (b) of Rule 5 of First Schedule of the Act was omitted by Finance Act, 1988 w.e.f. 1.4.1989 and re-inserted it by Finance Act (No.2) of 2009 w.e.f. 1.4.2011 and was re-substituted the same by Fi…

Oriental Insurance Co. Ltd. v. DCIT (407 ITR 658) — Cited in 19 Judgments | BharatTax