DCIT 14(2)(1), MUMBAI V. INDIAFIRST LIFE INSURANCE CO.LTD, MUMBAI

ITA 271/MUM/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5498 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 11-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR LD
• Section: 143(3)

Judgement Text

ITA NO.271/MUM/2018 INDIAFIRST LIFE INSURANCE CO. LTD. ASSESSMENT YEAR :2011-12 1 IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE HONBLE SHRI SAKTIJIT DEY, JM AND HONBLE SHRI MANOJ KUMAR AGGARWAL, AM ./ I.T.A. NO.271/MUM/2018 ( / ASSESSMENT YEAR: 2011-12) D EPUTY COMMISSIONER OF INCOME TAX-14(2)(1) 4 TH FLOOR, 432 AAYKAR BHAWAN M.K.ROAD, MUMBAI 400 020 / VS. INDIAFIRST LIFE INSURANCE CO.LTD. 301-B WING THE QUBE, INFINITY PARK DINDOSHI-FILM CITY ROAD MALAD(E), MUMBAI 400 097 ./ ./PAN/GIR NO. AADCB-6215-G ( /APPELLANT ) : ( / RESPONDENT ) ASSESSEE BY : KETAN VED, LD. AR REVENUE BY : MANOJ KUMAR, LD. SR. DR # $% / DATE OF HEARING : 17/01/2019 # $% / DATE OF PRONOUNCEMENT : 05/02/2019 / O R D E R PER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. AFORESAID APPEAL BY REVENUE FOR ASSESSMENT YEAR [AY] 2011-12 CONTEST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-22, MUMBAI, [CIT(A)], APPEAL NO. CIT(A)22/IT/120/2014-15 DATED 26/10/2017 QUA DELETION OF DISALLOWANCE OF DIVIDEND INCOME FOR RS.184.48 LACS AS MADE BY LD.AO. THE ASSESSEE BEING RESIDENT ITA NO.271/MUM/2018 INDIAFIRST LIFE INSURANCE CO. LTD. ASSESSMENT YEAR :2011-12 2 CORPORATE ENTITY STATED TO BE ENGAGED IN INSURANCE BUSINESS WAS ASSESSED FOR IMPUGNED AY U/S 143(3) ON 31/03/2017 B Y LD. DEPUTY COMMISSIONER OF INCOME TAX-10(1), MUMBAI [AO] WHEREIN THE RETURNED LOSS OF RS.66.59 CRORES WAS REDUCED TO RS.64.75 CRO RES AFTER SOLE DISALLOWANCE OF RS.184.48 LACS. 2. DURING ASSESSMENT PROCEEDINGS, IT TRANSPIRED THA T THE ASSESSEE EARNED DIVIDEND INCOME FROM INVESTMENTS [EXCLUDING DIVIDEND INCOME EARNED UNDER PENSION FUND] FOR RS.184.48 LACS AND C LAIMED THE SAME TO BE EXEMPT U/S 10(34). HOWEVER, LD. AO OPINED THAT DIVIDEND INCOME WHICH FALLS UNDER THE HEAD INCOME FROM OTHER SOURCES COULD NOT BE COMPUTED SEPARATELY TO CLAIM EXEMPTION U/S 10(34) A S THIS WILL AMOUNT TO VIOLATION OF PROVISIONS OF SECTION 44. ACCORDINGLY, DISALLOWING THE SAME, THE LOSS CLAIMED BY THE ASSESSEE WAS REDUCED TO THA T EXTENT. 3. THE LD. CIT(A) REVERSED THE STAND OF LD. AO BY R ELYING UPON THE STAND OF ITS PREDECESSOR IN ASSESSEES OWN CASE FOR AY 2010-11 AS CONFIRMED BY TRIBUNAL VIDE ITA NO. 7276/MUM/2014 DATED 11/01/2017. AGGRIEVED, THE REVENUE IS IN FURTHER APPEAL BEFORE US. 4. THOUGH LD. DR PLACED RELIANCE ON THE STAND OF LD . AO, HOWEVER, THE UNDISPUTED POSITION THAT EMERGES IS THAT THE IS SUE STOOD SQUARELY COVERED IN ASSESSEES FAVOR BY THE CITED ORDER OF T HIS TRIBUNAL FOR AY 2010-11. NOTHING COULD BE BROUGHT ON RECORD TO ESTA BLISH THAT THE AFORESAID RULING WAS NOT APPLICABLE TO THE FACT OF THE CASE. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF CO-ORDINATE BENCH, WE CONFIRM THE STAND OF LD. FIRST APPELLATE AUTHORITY. 5. THE APPEAL STANDS DISMISSED. ITA NO.271/MUM/2018 INDIAFIRST LIFE INSURANCE CO. LTD. ASSESSMENT YEAR :2011-12 3 ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH FEBRUARY, 2019. SD/- SD/- (SAKTIJIT DEY) (MANOJ KUMAR AGGARWAL) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; DATED : 05.02.2019 SR.PS, JAISY VARGHESE / COPY OF THE ORDER FORWARDED TO : 1. !' / THE APPELLANT 2. #$!' / THE RESPONDENT 3. %% ( ) / THE CIT(A) 4. %% / CIT CONCERNED 5. & '# ( , % ( , / DR, ITAT, MUMBAI 6. ' *+, / GUARD FILE / BY ORDER, / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI.