2025 (3) TMI 2299

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....f the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] whereby the Ld. CIT(A) had partly allowed the appeal against the Assessment Order, dated 21/11/2019, passed under Section 143(3) of the Act for the Assessment Year 2017-2018. 2. The Revenue has raised following grounds of appeal : "1. Whether on the facts & circumstances of the case and in law, the Ld. CIT(A) erred in interpreting the provisions of Section 44 of the Income Tax Act, 1961 ["the Act"] read with Rule 2 of the First Schedule along with provisions of Insurance Act, 1938, insurance Regulatory and Development Authority Act, 1999 and regulations made there under and accordingly allowing adjustment from the 'surplus' worked out as per 'actuarial....

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....as justified in holding that provisions of section 14A of the Act did not apply to Insurance business, even when the assessee has claimed exempted income u/s. 10(34) of the Act" 3. Relevant facts in brief that the return of income filed by the Assessee, a life insurance company, for the Assessment Year 2017- 2018 was selected for regular scrutiny and Assessment Order under Section 143(3) of the Act was passed on 21/11/2019 assessing the total income of the Assessee at INR. 97,77,87,780/-. The Assessee had filed the appeal against the above Assessment Order before the CIT(A) raising five grounds. Ground No. 1 raised by the Assessee was general in nature; Ground No.2 pertained to disallowance under Section 14A of the Act; Ground No. 3 pert....

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.... 6. As regards, Ground No. 6 raised by the Revenue challenging the order passed by the CIT(A) deleting the disallowance/addition made by Assessing Officer under Section 14A of the Act is concerned, we find that the issues is squarely covered in the favour of the Assessee by the decision of Co-ordinate Bench of the Tribunal in the case of the Assessee for the Assessment Year 2016-17. We find that the CIT(A) has granted relief to the Assessee by following the aforesaid decision of the Tribunal. The relevant extract of the order passed by CIT(A) reads as under: "6.2 In this regard it is seen that with reference to disallowance u/s 14A of the Act read with rule 8D, reliance has been placed on appellant's own Hon'ble ITAT Mumbai order....

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....see in the present case should not be any exception. Considering the settled nature of the issue vide decisions of the Tribunal's order (supra), ground no.3 raised by the assessee for the AY 2006-07 is allowed." 8. We find similar view has been taken in the case of ICICI Prudential Insurance v/s. ACIT (supra), IDBI Federal Life Insurance Co. Ltd. (supra) and Birla Sunlife Insurance Co. Ltd. (supra). No contrary decision has been brought to our notice by the Revenue. Therefore, in the light of above decisions, we hold that the provisions of section 14A are not attracted in the case of Insurance Companies. The ground No.3 of appeal is dismissed, accordingly." 6.3 Therefore, respectfully following the Hon'ble Mumbai ITAT in t....