M/s. Agriculture Insurance Company of India Ltd., New Delhi V. ACIT, New Delhi

ITA 4/DEL/2015

• Counselvise Citation: [2018] 129 COUNSELVISE.COM (IT) 9977 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 01-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Section: 143(3); 14A

Judgement Text

ITA NO . 4 /DEL/201 5 ASSESSMENT YEAR: 2010 - 11 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI A BENCH, NEW DELHI [CORAM : PRAMOD KUMAR AM AND SUDHANSHU SRIVASTAVA JM ] ITA NO . 04 /DEL/2015 ASSESSMENT YEAR : 20 10 - 11 AGRICULTURE INSURANCE COMPANY OF INDIA LTD. ............................. ....APPLICANT 13 TH FLOOR, AMBADEEP BUILDING, 14, K.G. MARG, NEW DELHI [PAN: AAECA2874P ] VS ACIT CIRCLE - 1(1) NEW DELHI . ......RESPONDENT APPEARANCES BY AKASH SINGHAL , CA FOR THE APP ELLANT RAVI KANT GUPTA , FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : MAY 2 8 , 201 8 DATE OF PRONOUNC ING THE ORDER : MAY 30 , 201 8 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE APPELLANT HAS CHALLENGED CORRECTNESS OF LEARNED CIT(A) S ORDER DATED 29 TH OCTOBER , 201 4 IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2010 - 11. 2. GRIEVANCES OF THE ASSESSEE , IN SUBSTANCE, IS THAT THE LEARNED CIT(A) ERRED I N UPHOLDING THE DISALLOWANCE OF RS. 37,82,781 (ERRONEOUSLY STATED TO BE 58,11,413 IN THE GROUNDS OF APPEAL ) . 3. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING LEARNED REPRESENTATIVES FAIRLY AG REED THAT THE ABOVE ISSUE IS NOW SQUARELY COVERED, IN FAVOUR OF THE ASSESSEE, BY AN ORDER DATED 9 TH NOVEMBER, 2017 PASSED BY A C O - ORDINATE B ENCH OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEAR 2011 - 12 WHICH IN TURN FOLLOWS AN EARLIER DECISION OF THE TRIBUNAL I.E. ORDER 1 ST MARCH, 2016 IN ASSESSEE S OWN CASE IN ASSESSMENT YEAR 2008 - 09. THE C O - ORDINATE B ENCH HAS HELD THAT SINCE THERE IS A NON - OBSTANTE CLAUSE IN SECTION 44 WHICH PROVIDES THAT NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE PROVISIONS OF THE ACT RELATING TO COMPUTATION OF INCOME C HARGEABLE INTER ALIA UNDER THE HEAD PROFITS AND GAINS OF ANY BUSINESS, THE INCOME OF THE INSURANCE COMPANY IS TO BE COMPUTED IN ACCORDANCE WITH RULES CONTAINED IN FIRST SCHEDULE TO THE INCOME TAX ACT. IT IS ON THIS BASIS THAT THE C O - ORDINATE B ENCHES HAVE H ELD THAT PROVISIONS OF SECTION 14A WILL NOT COME INTO PLAY IN COMPUTATION OF BUSINESS PROFITS OF THE ASSESSEE COMPANY. THERE IS NO DISPUTE THAT THESE OBSERVATIONS ALSO CLINCH THE ISSUE IN ITA NO . 4 /DEL/201 5 ASSESSMENT YEAR: 2010 - 11 PAGE 2 OF 2 FAVOUR OF THE ASSESSEE IN THE PRESENT CASE. LEARNED DEPARTMENTAL REP RESENTATIVE HAS NOT POINTED OUT ANY REASONS AS TO WHY WE SHOULD MAKE A DEVIATION FROM THE DECISIONS OF THE C O - ORDINATE B ENCHES IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEAR 2011 - 12 AND 2008 - 09. HE HAS FAIRLY ACCEPTED THE ISSUE TO BE COVERED BY EARLIER DEC ISIONS OF THE COORDINATE BENCHES. 4. IN VIEW THESE DISCUSSIONS AND BEARING IN MIND ENTIRETY OF THE CASE WE ARE OF THE CONSIDERED VIEW THAT, RESPECTFULLY FOLLOWING THE C OORDINATE B ENCH DECISIONS , THE IMPUGNED DISALLOWANCE U/S 14A DESERVES TO BE DELETED. WE , ACCORDINGLY DIRECT THE ASSESSING OFFICER TO DELETE THE DISALLOWANCE OF RS. 37,82,781 . 5. IN THE RESULT, THE APPEAL IS ALLOWED IN THE TERMS INDICATE ABOVE . ORDER PRONOUNCED IN THE OPEN COURT ON 30 .5.2018. SD/ - SD/ - SUDHANSHU S RIVASTAVA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) NEW DELHI , DATED THE 30 DAY OF MAY , 2018 COPIES TO : (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI