DCIT, CIR-6(2), KOLKATA, Kolkata V. National Insurance Company Ltd., Kolkata

ITA 776/KOL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1384 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 01-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G HANGSHING
• Section: 115JB

Judgement Text

1 ITA NO.776/KOL/2015 NATIONAL INSURANCE CO. LTD., AY 2011-12 , B , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE .., /AND , ) [BEFORE SHRI A. T. VARKEY, JM & SHRI WASEEM AHMED, AM] I.T.A. NO. 776/KOL/2015 ASSESSMENT YEAR: 2011-12 DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-6(2), KOLKATA. VS. M/S. NATIONAL INSURANCE CO. LTD. (PAN: AAACN9967E) APPELLANT RESPONDENT DATE OF HEARING 05.07.2017 DATE OF PRONOUNCEMENT 20.09.2017 FOR THE APPELLANT SHRI G. HANGSHING, CIT, DR FOR THE RESPONDENT SHRI SANJAY BHATTACHARYA, FCA ORDER PER SHRI A.T.VARKEY, JM THIS IS AN APPEAL PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A)-2, KOLKATA DATED 17.03.2015 FOR AY 2011-12. 2. REVENUES APPEAL IS TIME BARRED BY 7 DAYS AND CO NDONATION PETITION HAS BEEN FILED. SINCE LD. COUNSEL FOR THE ASSESSEE HAS GIVEN CONCES SION FOR CONDONING THE DELAY, WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. 3. THE FIRST ISSUE OF REVENUES APPEAL IS AGAINST T HE ORDER OF LD. CIT(A) DELETING THE DISALLOWANCE MADE BY AO OF RS.45,59,000/- BY HOLDIN G THAT INVESTMENT WRITTEN OFF BY ASSESSEE WAS AN ALLOWABLE DEDUCTION. 4. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE WR OTE OFF RS.45,59,000/- OUT OF INVESTMENTS BY CHARGING THE SAID SUM TO ITS P&L ACC OUNT. THE AO HELD THAT THE ABOVE WRITE OFF COULD NOT BE ALLOWED AS ADMISSIBLE DEDUCT ION AND HE DISALLOWED THE SAME. ON APPEAL, THE LD. CIT(A) DELETED THE DISALLOWANCE BY FOLLOWING THE DECISION OF AY 2011-12 OF HIS PREDECESSOR. AGGRIEVED, REVENUE IS IN APPEA L BEFORE US. 2 ITA NO.776/KOL/2015 NATIONAL INSURANCE CO. LTD., AY 2011-12 5. AT THE TIME OF HEARING BEFORE US, LD. DR RELIED ON THE ORDER OF THE AO AND ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUBMIT TED THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE IN ITA NOS. 674/K/2012, 982/K/2012 & 983/K/2012 FOR AYS 2005-06 TO 2008-09 VIDE ORDER DATED 05.08.2 016. 6. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE COORDINATE BENCH OF THIS TR IBUNAL VIDE ITS ORDER DATED 05.08.2016 IN ASSESSEES OWN CASE, CITED SUPRA ON IDENTICAL ISSUE ALLOWED THE CLAIM OF ASSESSEE AND DISMISSED THE REVENUES APPEAL ON THIS ASPECT. SIN CE THE FACTS ARE SIMILAR AND ISSUE IS IDENTICAL AND THE LD. DR WAS UNABLE TO BRING OUT AN YTHING ON RECORD TO CONTROVERT FACTS OR LAW, WE RESPECTFULLY FOLLOWING THE TRIBUNALS ORDER DATED 05.08.2016, CITED SUPRA, CONFIRM THE ORDER OF LD. CIT(A) ORDERING DELETION OF THE DI SALLOWANCE. THEREFORE, THIS GROUND OF APPEAL OF REVENUE IS DISMISSED. 7. THE SECOND GROUND OF APPEAL OF REVENUE IS AGAINS T THE ACTION OF LD. CIT(A) IN HOLDING THAT A SUM OF RS.4,82,50,000/- BEING AMORTI ZATION OF PREMIUM WAS AN ALLOWABLE DEDUCTION. 8. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CL AIMED RS. 4,82,50,000/- TOWARDS AMORTIZATION OF PREMIUM PAID ON INVESTMENTS . THE AO WAS OF THE VIEW THAT THIS WAS AN EXPENDITURE, WHICH WAS CAPITAL IN NATURE AND HE DIS ALLOWED THE SAME. ON APPEAL, THE LD. CIT(A) DELETED THE DISALLOWANCE BY FOLLOWING THE DE CISION OF AY 2011-12 OF HIS PREDECESSOR. AGGRIEVED, THE REVENUE IS IN APPEAL B EFORE US. 9. AT THE TIME OF HEARING BEFORE US, LD. DR RELIED ON THE ORDER OF THE AO AND ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUBMIT TED THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE IN ITA NOS. 674/K/2012, 982/K/2012 & 983/K/2012 FOR AYS 2005-06 TO 2008-09 VIDE ORDER DATED 05.08.2 016. 10. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE COORDINATE BENCH OF THIS TR IBUNAL VIDE ITS ORDER DATED 05.08.2016 IN ASSESSEES OWN CASE, CITED SUPRA ON IDENTICAL ISSUE ALLOWED THE CLAIM OF ASSESSEE AND DISMISSED THE REVENUES APPEAL ON THIS ASPECT. SIN CE THE FACTS ARE SIMILAR AND ISSUE IS IDENTICAL AND THE LD. DR WAS UNABLE TO BRING OUT AN YTHING ON RECORD TO CONTROVERT THE FACTS 3 ITA NO.776/KOL/2015 NATIONAL INSURANCE CO. LTD., AY 2011-12 OR LAW, WE RESPECTFULLY FOLLOWING THE TRIBUNALS OR DER DATED 05.08.2016, CITED SUPRA, CONFIRM THE ORDER OF LD. CIT(A) TO DELETE THE DISAL LOWANCE. THEREFORE, THIS GROUND OF APPEAL OF REVENUE IS DISMISSED. 11. GROUND NO. 3 OF REVENUES APPEAL IS AGAINST THE ORDER OF LD. CIT(A) ON ACCOUNT OF ADDITION TOWARDS RESERVE CREATED FOR UNEXPIRED RISK U/S. 115JB OF THE INCOME-TAX ACT, 1961. 12. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE HAD DEBITED AN AMOUNT OF RS.625,75,52,000/- IN P&L ACCOUNT ON ACCOUNT OF RESERVE FOR UNEXPIRED RISK. THE AO OPINED THAT SUCH RESERVE WAS REQUIRED TO BE ADDED BACK TO THE BOOK P ROFIT FOR PURPOSE OF SECTION 115JB OF THE ACT, THEREFORE, HE ADDED BACK THE SAME TO ASSESSEE S INCOME. ON APPEAL, LD. CIT(A) DELETED THE DISALLOWANCE BY FOLLOWING THE DECISION OF HIS PREDECESSOR. AGGRIEVED, REVENUE IS IN APPEAL BEFORE US. 13. AT THE TIME OF HEARING BEFORE US, LD. DR RELIED ON THE ORDER OF THE AO AND ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE SUBMIT TED THAT THE ISSUE IS NOW COVERED IN FAVOUR OF THE ASSESSEE IN ITS OWN CASE IN ITA NOS. 674/K/2012, 982/K/2012 & 983/K/2012 FOR AYS 2005-06 TO 2008-09 VIDE ORDER DATED 05.08.2 016. 14. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE COORDINATE BENCH OF THIS TR IBUNAL VIDE ITS ORDER DATED 05.08.2016 IN ASSESSEES OWN CASE, CITED SUPRA ON IDENTICAL ISSUE ALLOWED THE CLAIM OF ASSESSEE AND DISMISSED THE REVENUES APPEAL ON THIS ASPECT. SIN CE THE FACTS ARE SIMILAR AND ISSUE IS IDENTICAL AND THE LD. DR WAS UNABLE TO BRING OUT AN YTHING ON RECORD TO CONTROVERT THE FACTS OR LAW, WE RESPECTFULLY FOLLOWING THE TRIBUNALS OR DER DATED 05.08.2016, CITED SUPRA, CONFIRM THE ACTION OF THE LD. CIT(A) TO DELETE THE DISALLOWANCE. THEREFORE, THIS GROUND OF APPEAL OF REVENUE IS DISMISSED. 15. IN THE RESULT, THE APPEAL OF REVENUE IS DISMISS ED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 20.09.2017 SD/- SD/- (WASEEM AHMED) (ABY. T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED :20TH SEPTEMBER, 2017 4 ITA NO.776/KOL/2015 NATIONAL INSURANCE CO. LTD., AY 2011-12 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . APPELLANT DCIT, CIRCLE-6(2), KOLKATA 2 RESPONDENT M/S. NATIONAL INSURANCE CO. LTD., 3, M IDDLETON STREET, KOLKATA-700 017. 3 . THE CIT(A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, SR. PVT. SECRETARY