2019 (8) TMI 1754 - AT - Income Tax

ITAT Mumbai Upholds CIT(A) Decisions on Revenue's Appeal, Favorable Outcome for Assessee

ACIT-12 (2) (2) 12 (2) (2), Versus  M/s. India First Life Insurance Company Ltd.

The Appellate Tribunal ITAT MUMBAI dismissed the revenue's appeal, upholding the decisions of the CIT(A) regarding the deletion of additions on both ... Addition made on account of exemption of income from pension fund u/s 10(23AAB) - HELD THAT:-we find that the CIT(A) has decided the matter of controversy on the basis of the decision of Hon’ble ITAT in the assessee’s own case for the A.Y.2010-11 in [2017 (1) TMI 1760 - ITAT MUMBAI]as passed on the basis of decision of the Hon’ble Bombay High Court in case of LIC of India Ltd. [2011 (8) TMI 47 - BOMBAY HIGH COURT]. Accordingly, the claim of the loss of the Pension Fund was held to be allowable claim. The section 44 of the Act has clearly been distinguished on account of loss in the pension scheme. The facts are not distinguishable at the stage. No law contrary to the law relied by the assessee has been produced before us. Since the case of the assessee has duly been covered by the decision of the Hon’ble ITAT in the assessee’s own case (supra), therefore, we are of the view that the finding of the CIT(A) is quite justifiable which is not liable to be disturbed at this stage. Accordingly, this issue is decided in favour of the assessee against the revenue. Addition made on account of deduction claimed on Dividend Income u/s 10(34) - whether dividend income was assessable under the head income from business and profession and cannot be computed separately to claim exemption u/s 10(34) as this will amount to violation of provision of section 44 of the Income Tax Act - HELD THAT:- As in the assessee’s own case for the A.Y.2010-11 in [2017 (1) TMI 1760 - ITAT MUMBAI]qua the provisions of section 44 of the Act, we find that the finding of the CIT (A) in para 5.3 of his order is fair and reasonable as the same is taken based on the various binding judicial precedents in the cases of LIC vs. Addl. CIT. [1977 (11) TMI 25 - BOMBAY HIGH COURT], ICICI Prudential Insurance vs. ACIT; [2012 (11) TMI 13 - ITAT MUMBAI], and SBI Life Insurance Company Ltd vs. CIT etc [2014 (5) TMI 1067 - ITAT MUMBAI] Accordingly, we affirm the order of the CIT (A) on this issue too. Thus, both the issues raised by the Revenue are allowed in favour of the assessee. Issues:1. Deletion of addition on account of exemption of income from pension fund u/s 10(23AA) of the Act.2. Deletion of addition made on account of deduction claimed on Dividend Income u/s 10(34) of the Act.Issue No. 1:The revenue challenged the deletion of addition on account of exemption of income from the pension fund u/s 10(23AAB) of the Act. The CIT(A) allowed the claim of the assessee based on previous decisions. The CIT(A) referred to a previous decision by the Hon'ble ITAT in the assessee's case for A.Y. 2010-11, where it was held that losses in a pension fund should be allowed to be adjusted against the surplus amount from the insurance business. The CIT(A) relied on the decision of the Hon'ble Bombay High Court in the case of LIC of India Ltd. The ITAT upheld the CIT(A)'s decision, stating that the claim of loss from the Pension Fund is allowable. The ITAT concluded that the CIT(A)'s finding was fair and reasonable, dismissing the Revenue's appeal. The ITAT found that the CIT(A) rightly decided the matter based on previous decisions and upheld the allowance of the claim. Therefore, this issue was decided in favor of the assessee against the revenue.Issue No. 2:The second issue revolved around the deletion of the addition made on account of deduction claimed on Dividend Income u/s 10(34) of the Act. The CIT(A) allowed the claim of the assessee based on previous judicial rulings. The CIT(A) referred to various judicial rulings supporting the assessee's entitlement to exemption under section 10. The ITAT affirmed the CIT(A)'s decision, stating that it was fair and reasonable based on binding judicial precedents. The ITAT upheld the CIT(A)'s order on the issue, allowing both issues raised by the revenue in favor of the assessee. The ITAT found that the CIT(A) passed the order judiciously and correctly based on the previous decisions and ruled in favor of the assessee against the revenue. Therefore, this issue was also decided in favor of the assessee.In conclusion, the Appellate Tribunal ITAT MUMBAI dismissed the revenue's appeal, upholding the decisions of the CIT(A) regarding the deletion of additions on both issues raised. The judgments were based on previous decisions and judicial precedents, leading to a favorable outcome for the assessee in both instances.