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of <h1>Tribunal rules on Revenue's appeal for interest, bonus, and leave encashment but rejects amortization for insurance.</h1> <h3>ACIT, Central Circle-1 Versus Sahara India Life Insurance Co. Ltd.</h3> ACIT, Central Circle-1 Versus Sahara India Life Insurance Co. Ltd. - TMI Issues:Assessment of total income including additions/disallowances - Amortization of investment, Interest on TDS, Bonus Unpaid, Leave Encashment Unpaid.Amortization of Investment:The AO made an addition of &8377; 1,43,46,219.44 on account of amortization of investment in securities, considering the investment activity as separate from the life insurance business. The assessee argued that the amortization is in accordance with the Insurance Act and IRDA guidelines. The CIT(A) deleted the addition, citing that the provisions of sections 28 to 43 of the IT Act do not apply to life insurance businesses. The Tribunal upheld the CIT(A)'s decision, noting consistency with past orders and no contrary evidence presented.Interest on TDS:The AO disallowed &8377; 960 debited as interest on TDS under 'Miscellaneous expenses'. The CIT(A) deleted this addition, but the Tribunal reversed it, citing Supreme Court and High Court decisions that interest on TDS is not an allowable expenditure. The ground raised by the Revenue was allowed.Bonus Unpaid:The AO added &8377; 6,62,612 as bonus unpaid under section 43B, disallowed as it was not paid before the specified date. The CIT(A deleted the addition, following past decisions. The Tribunal disagreed, stating that since the bonus was not paid, it should not have been allowed as an expenditure. The ground raised by the Revenue was allowed.Leave Encashment Unpaid:The AO disallowed &8377; 31,63,861 for leave encashment unpaid under section 43B. The CIT(A, following past decisions, deleted the addition. The Tribunal disagreed, pointing out that as per section 43B(f), such sums are not deductible unless paid. The Tribunal set aside the CIT(A)'s decision, stating that the order was not in accordance with the law.In conclusion, the appeal by the Revenue was partly allowed, with the Tribunal upholding the addition of interest on TDS, bonus unpaid, and leave encashment unpaid, while supporting the deletion of the amortization of investment addition. The decision was pronounced on 30.06.2021.
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