Principal Commissioner of Income Tax v. National Insurance Company Ltd.

393 ITR 52High Court2017#10586 most cited

What is Principal Commissioner of Income Tax v. National Insurance Company Ltd. authority for?

Profits on the sale of investments made by a general insurance company should not be taxed if Circular No. 528 of 1988 has been issued, especially in light of the deletion of Rule 5(b) and the binding nature of CBDT circulars on the revenue.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2020 to 2025.

Also referred to as

Principal Commissioner of Income Tax v. National Insurance Company Ltd. · profits on sale of investments · general insurance business · Circular No. 528 of 1988 · deletion of Rule 5(b) · CBDT circulars binding on revenue · taxation of investment income

Also reported as

246 Taxmann 17679 Taxmann.com 112

Sections most often in play

Section 10(38)Section 115JBSection 143(3)Section 32Section 36(1)(vii)Section 40(a)(ii)Section 44

Issues it is cited on

section 37bsection 111asection 111interest on securitiessection 199section 30section 10(38)section 45section 32section 80p(2)(a)penalty u/s 271(1)(c)section 43b

Judgments citing Principal Commissioner of Income Tax v. National Insurance Company Ltd.

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

…Binding nature of the Circular 42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Company Ltd. [2017] 393 ITR 52 (Cal), it was held that Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision referred to the decision in Paper Products Ltd. v. Commissioner of Central Excis…

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

…Binding nature of the Circular 42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Company Ltd. [2017] 393 ITR 52 (Cal), it was held that Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision referred to the decision in Paper Products Ltd. v. Commissioner of Central Excis…

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

…Binding nature of the Circular 42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Company Ltd. [2017] 393 ITR 52 (Cal), it was held that Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision referred to the decision in Paper Products Ltd. v. Commissioner of Central Excis…

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

…Binding nature of the Circular 42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Company Ltd. [2017] 393 ITR 52 (Cal), it was held that Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision referred to the decision in Paper Products Ltd. v. Commissioner of Central Excis…

Bajaj Allianz General Insurance Company Ltd., Pune vs. Deputy Commissioner of Income-Tax

ITA 1655/PUN/2015[2007-08]Status: DisposedITAT Pune19 Apr 2022AY 2007-08
For Appellant: Shri Percy J. Pardiwalla &For Respondent: Ms. Divya Bajpai, CIT
Section 14ASection 28Section 43BSection 44

…ubmitted that this issue also stands squarely covered in favour of the assessee in the light of the Hon‟ble Calcutta High Court decision for A.Y. 2005-06 in the case of National Insurance Co. Ltd. & C.O. 112/PUN/2017 Bajaj Allianz General A.Y. 2007-08 (2017) 393 ITR 52 (Cal) wherein it has been held that in view of the deletion of Rule 5(b) and having regard to the legislative intent specified in the CBDT circular No. 528/1988 (being binding on the Tax Department), the profits on sale of investments should not be taxed. The Pune Bench of the Tribunal has taken cognizance of the said decision while passing order…

Deputy Commissioner of Income-Tax vs. Bajaj Allianz General Insurance Company Ltd., Pune

ITA 1645/PUN/2015[2007-08]Status: DisposedITAT Pune19 Apr 2022AY 2007-08
For Appellant: Shri Percy J. Pardiwalla &For Respondent: Ms. Divya Bajpai, CIT
Section 14ASection 28Section 43BSection 44

…ubmitted that this issue also stands squarely covered in favour of the assessee in the light of the Hon‟ble Calcutta High Court decision for A.Y. 2005-06 in the case of National Insurance Co. Ltd. & C.O. 112/PUN/2017 Bajaj Allianz General A.Y. 2007-08 (2017) 393 ITR 52 (Cal) wherein it has been held that in view of the deletion of Rule 5(b) and having regard to the legislative intent specified in the CBDT circular No. 528/1988 (being binding on the Tax Department), the profits on sale of investments should not be taxed. The Pune Bench of the Tribunal has taken cognizance of the said decision while passing order…

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

…he issue is reproduced hereunder: “42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Co. Ltd. [2017] 393 ITR 52/246 Taxman 176/79 taxmann.com 112 (Cal.), it was held that M/s The Oriental Insurance Co. Ltd. vs. DCIT Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision…

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

…he issue is reproduced hereunder: “42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Co. Ltd. [2017] 393 ITR 52/246 Taxman 176/79 taxmann.com 112 (Cal.), it was held that M/s The Oriental Insurance Co. Ltd. vs. DCIT Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision…

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

…its. Binding nature of the Circular 42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Co. Ltd. [2017] 393 ITR 52/246 Taxman 176/79 taxmann.com 112 (Cal.), it was held that Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision referred to the decision in Paper Products Lt…

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

…its. Binding nature of the Circular 42. The above approach of the AO in relation to Circular No. 528 and its binding nature as far as the Revenue is concerned, appears to be flawed. In Principal Commissioner of Income Tax v. National Insurance Co. Ltd. [2017] 393 ITR 52/246 Taxman 176/79 taxmann.com 112 (Cal.), it was held that Circular No. 528 of 1988 did not permit the AO to add back the profits arising from the sale of investments made by the Assessee in that case which was also carrying on a general insurance business. The Calcutta High Court in the above decision referred to the decision in Paper Products Lt…

Principal Commissioner of Income Tax v. National Insurance Company Ltd. (393 ITR 52) — Cited in 10 Judgments | BharatTax