TATA AIA LIFE INSURANCE COMPANY LIMITED,MUMBAI V. JCIT (OSD), I/C DCIT, CIRCLE-8(3)(1), MUMBAI

MA 238/MUM/2024

AI Insights

The case involves three Miscellaneous Applications (MAs) filed by Tata AIA Life Insurance Company Ltd. against the Common Order passed by the Income Tax Appellate Tribunal, Mumbai. The applications sought rectification of the order concerning the incorrect mention of the assessment year and the non-adjudication of additional grounds related to the computation of income for the assessment years 2013-14 and 2018-19. The Tribunal acknowledged the mistakes and rectified the order accordingly, correcting the assessment year from 2010-11 to 2018-19 for one of the ITAs and adjudicating the additional grounds as infructuous based on the precedents set in similar cases for the respective assessment years.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471079 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Laws Referred To: Insurance Regulatory and Development Authority Act, 1999, Insurance Act, 1938
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Earning of tax free income
• Section: 144; 10; 14A; 20

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL \"E\" BENCH, MUMBAI SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER MA. No. 238/MUM/2024 (Arising out of ITA. No. 1757/MUM/2023 (Assessment Year: 2018-19) Tata AIA Life Insurance Company Ltd. 14th Floor, Tower-A, Peninsual Business Park, Senapati Bapat Marg, Lower Pare, Mumbai-400013 Appellant/ [PAN: AABCT3784C] The Joint Commissioner of Income-tax (OSD)-I/C Deputy Commissioner of Income-tax 8(3)(1) Room No. 615, 6th Floor, Aaykar Bhavan, Mumbai. …………. Vs …………. Applicant Respondent AND MA. No. 233/MUM/2024 (Arising out of ITA. No. 1897/MUM/2023 (Assessment Year: 2013-14) MA. No. 234/MUM/2024 (Arising out of ITA. No.1759/MUM/2023 (Assessment Year: 2018-19 ) The Joint Commissioner of Income-tax (OSD)-I/C Deputy Commissioner of Income-tax 8(3)(1) Room No. 615, 6th Floor, Aaykar Bhavan, Mumbai ……… Appellant Tata AIA Life Insurance Company Ltd. Vs 14th Floor, Tower-A, Peninsula Business Park, Respondent/ Senapati Bapat Marg, Lower Parel, Mumbai-400013 .……… Applicant Appearance For the Assessee For the Department : : Shri Madhur Agrawal Shri Hemanshu Joshi, Sr. DR Date Conclusion of hearing Pronouncement of order : : 13.12.2024 06.03.2025 O R D E R Per Rahul Chaudhary, Judicial Member: 1. These are three Miscellaneous Application filed by the Assessee arising from Common Order, dated 31/01/2024, passed by the Tribunal MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 2 disposing off the ITA No. 1879/MUM/2023 filed by the Revenue and Cross objection No. 80 filed by the Assessee for the Assessment Year 2013-14, and ITA No. 1759/MUM/2023 filed by the Revenue and ITA No. 1757/MUM/2023 filed by the Assessee pertaining to the Assessment Year 2018-19. The applications are treated as having been filed within limitation as the same were filed within 6 months of receipt of the Common Order. MA No. 238/MUM/2024 (Assessment Year 2018-19) 2. We would first take up Miscellaneous Application No. 238/MUM/2024 arising out of ITA No. 1757/MUM/2023 pertaining to Assessment Year 2018-2019 preferred by Assessee seeking rectification of Common Order, dated 31/01/2024. 3. We heard both the sides in relation to the mistakes apparent on record highlighted in the application under consideration. Incorrect Assessment Year 4. The Leaned Authorised Representative for the Assessee attracting are attention to the cause title of the order submitted that for ITA No. 1757/MUM/2023, the Assessment Year has been incorrectly mentioned as ‘2010-11’ instead of ‘2018-19’. We find the aforesaid submission to be factually correct. The mistake apparent on record is hereby corrected and the ‘Assessment Year 2010-11’ mentioned under ITA No. 1757/MUM/2023 on the first page of the Common Order shall be replace by and be read as ‘Assessment Year 2018-19’. Non-Adjudication of Additional Ground 5. The Learned Authorised Representative for the Assessee had further pointed out the Assessee has raised additional ground vide letter, dated 01/09/2023, in ITA No. 1757/MUM/2023 pertaining to Assessment Year 2018-19 in relation to the manner of computation of income and the same read as under: MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 3 \"Where the surplus as per the Form I prepared in accordance with the provisions of the Insurance Regulatory and Development Authority Act, 1999 [i.e., 'new Form I'] is considered, the amount of INR 143,24,82,000 transferred from the Shareholders' Account to the Policyholders' Account should be reduced from the said surplus. This ground is without prejudice to the conclusion by the Commissioner of Income-tax (Appeals) that incremental surplus as per the Form 1 prepared in accordance with Unamended Insurance Act, 1938 ['old Form 1'], after allowing exemption under section 10 of the Act, should be the income of the Respondent.\" 5.1. It was submitted that identical ground raised by the Assessee in the Cross-Objection No.80/MUM/2023 filed in ITA No.1897/MUM/2023 preferred by the Revenue for the Assessment Year 2013-14 was disposed off as being infructuous. Thus, the Hon'ble Tribunal had inadvertently failed to dispose off the above Additional Ground raised in appeal preferred by the Assessee for the Assessment Year 2018- 19 as infructuous. It was submitted that the aforesaid gave rise to a mistake apparent from record which needed to be rectified. 5.2. The Learned Departmental Representative could not controvert the above submissions made by the Learned Authorised Representative for the Assessee. 5.3. On perusal of Common Order we find that the Additional Ground raised by the Assessee in appeal for the Assessment year 2018-19 is identical to the Cross Objection No. 1 raised by the Assessee in Appeal preferred by the Revenue for the Assessment Year 2013-14, and the same are reproduce as under: Assessment Year 2018-19 Assessment Year 2013-14 Additional Ground Letter dated 01/09/2023 Cross Objection No. 1 CO. No. 80/MUM/2023 As across objection to ground no. 4 raised by the Appellant in its appeal, the Respondent prays that MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 4 Where the surplus as per the Form I prepared in accordance with the provisions of the Insurance Regulatory and Development Authority Act, 1999 [i.e., 'new Form I'] is considered, the amount of INR 143,24,82,000 transferred from the Shareholders' Account to the Policyholders' Account should be reduced from the said surplus. This ground is without prejudice to the conclusion by the Commissioner of Income-tax (Appeals) that incremental surplus as per the Form 1 prepared in accordance with Unamended Insurance Act, 1938 ['old Form 1'], after allowing exemption under section 10 of the Act, should be the income of the Respondent.\" where the surplus as per the Form I prepared in accordance with the provisions of the Insurance Regulatory and Development Authority Act, 1999 [i.e., 'new Form I'] is considered, the amount of Rs. 2,30,35,570/- transferred from the Shareholders' Account to the Policyholders' Account should be reduced from the said surplus. This ground is without prejudice to the conclusion by the Commissioner of Income-tax (Appeals) that incremental surplus as per the Form I prepared in accordance with Unamended Insurance Act, 1938 ['old Form I'], after allowing exemption under section 10 of the Act, should be the income of the Respondent 5.4. We note that in Paragraphs 33 of the Common Order, the Cross Objection No.1 raised by the Assessee was dismissed as infructuous in the following manner: “Coming next to the Assessee’s cross-objection, the Learned Authorized Representative for the Appellant submits that the ground No.,1 is infructuous, therefore, dismissed. 5.5. During the course of hearing both the sides had agreed that Additional Ground raised by the Assessee for the Assessment Year 2018-19 had not been adjudicated and the facts and circumstances as prevailing in the Assessment Year 2018-19 were identical to Assessment Year 2013-14. Further, there is no dispute to the fact that the Additional Ground raised by the Assessee relates to computation of surplus as per the Form I prepared in accordance with the provisions of the Insurance Regulatory and Development Authority Act, 1999 [i.e., 'new Form I'] whereas the Tribunal has held that surplus is to be computed as per the Form I prepared in accordance with un-amended Insurance Act, 1938 ['old Form I']. Therefore, the Additional Ground raised by the Assessee has been MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 5 rendered infructuous. Therefore, given the facts and circumstances of the present case, the non-adjudication of the Additional Ground constituted mistake apparent on record which is hereby rectified. The Additional Ground raised by the Assessee, vide letter, dated 01/09/2023, in ITA No. 1757/MUM/2023 pertaining to Assessment Year 2018-19 is disposed off as being infructuous and following paragraph (numbered 25.1) is inserted between paragraph 25 and 26 of the Common Order: “25.1. Coming next to the Assessee’s Additional Ground raised vide letter dated 01/09/2023, the Learned Authorized Representative for the Appellant submits that the same is infructuous, therefore, dismissed.” 5.6. In view of the above, the present application filed by the Assessee is allowed and the Common Order, dated 31/01/2024 is rectified to the extent provided in paragraphs 4 and 5.5 above. MA No. 233/MUM/2024 (Assessment Year 2013-14) 6. We would next take up Miscellaneous Application No. 233/MUM/2024 filed by the Assessee in ITA No. 1897/MUM/2023 (preferred by the Revenue) pertaining to Assessment Year 2013-2014 seeking rectification of Common Order, dated 31/01/2024. 7. We heard both the sides in relation to the mistakes pointed out in the application under consideration. Incorrect Ground Number 8. The Leaned Authorised Representative for the Assessee submitted that Ground No. 8 raised by the Revenue is a general ground and the same reads as under: “The appellant craves leave to amend or alter any ground or add a new ground that may be necessary.\" MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 6 8.1. It was submitted that in Paragraph 32 of the Common Order, a typographical error has crept in while disposing off Ground No.8 raised by the Revenue as ‘Ground No. 8’ has been incorrectly mentioned as 'Ground no. 6'. 8.2. On perusal of Ground No. 6 raised by the Revenue we find that the same pertains to allowability of exemption under Section 10(23AAB) of the Act. In Paragraph 30 of the Common Order, the Tribunal has dismissed Ground No. 6 raised by the Revenue in the following manner: “30. Ground no. 3 & 6 of the revenue are similar to that of the ground no. 2 & 6 of AY. 2018-19 (supra), and since there is no change in fact or law, applying the ratio mutatis mutandis, we dismiss the grounds of appeal of the revenue,\" 8.3. On perusal of Common Order, we find that Ground No. 3 and 6 raised by Revenue in ITA No. 1897/MUM/2023 (Assessment Year 2013-14) are identical to Ground No. 2 and 6 raised by Revenue in ITA No. 1759/MUM/2023 (Assessment Year 2018-19). Therefore, there is no infirmity in Paragraph 30 of the Common Order. Therefore, we accept the contention of the Assessee that while disposing off Ground No.8 raised by the Revenue ‘Ground No. 8’ has been incorrectly mentioned as 'Ground no. 6'. Accordingly, the aforesaid mistake apparent from record is rectified and 'Ground no. 6' mentioned in Paragraph 32 of the Common Order is replace by and be read as ‘Ground No.8’. Non-Adjudication of Ground No. 7 9. The Learned Authorised Representative for the Assessee had further pointed out that Ground No.7 raised by the Revenue in ITA No. 1897/MUM/2023 pertaining to Assessment Year 2013-14 has not been adjudicated inadvertently. It was submitted that identical ground raised by the Revenue in the ITA No. 1759/MUM/2023 MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 7 pertaining to AY 2018-19 was dismissed by the Tribunal. Thus, the Tribunal had inadvertently failed to dismiss Ground No.7 raised by the Revenue in ITA No. 1897/MUM/2023 pertaining to Assessment Year 2013-14. It was submitted that the aforesaid gave rise to a mistake apparent from the record which needed to be rectified. 9.1. The Learned Departmental Representative could not controvert the above submissions made by the Learned Authorised Representative for the Assessee. 9.2. On perusal of Common Order we find that Ground No.7 raised by the Revenue in ITA No. 1897/MUM/2023 pertaining to Assessment Year 2013-14 is identical to Ground No. 7 raised by the Revenue in the ITA No. 1759/MUM/2023 pertaining to AY 2018-19, and the same are read as under: Assessment Year 2013-14 Assessment Year 2018-19 Ground No. 7 ITA No. 1897/MUM/2023 Ground No. 7 ITA No. 1759/MUM/2023 \"Whether, on the facts and in the circumstance of the case and in law, the Ld. CIT was correct in holding that the exemption under section 10(34) of the Act and 10(23AAB) was allowable to the assessee while calculating its income under section 44-read with First Schedule of the Act without considering its impact on Section 14A wrt to disallowance that needs to be made when part of the income earned is exempt income?\" \"Whether, on the facts and in the circumstance of the case and in law, the Ld. CIT was correct in holding that the exemption under section 10(34) of the Act and 10(23AAB) was allowable to the assessee while calculating its income under section 44 read with First Schedule of the Act without considering its impact on Section 144 wrt to disallowance that needs to be made when part of the income earned is exempt income\" 9.3. We note that in Paragraphs 19 and 20 of the Common Order, the Ground No. 7 raised by the Revenue in the ITA No. 1759/MUM/2023 pertaining to AY 2018-19 was dismissed by the Tribunal in the following manner: 19. Ground nos. 3, 4 & 7 are regarding disallowance made by AO u/s 14A of the Act. The Ld. AR pointed out that these issues are also MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 8 covered in favour of assessee in assessee's own case (supra) wherein at para 10 it was held as under: - \"10. Lastly, with regard to ground no. 4, that is, disallowing exemption under section 10(34) with regard to the dividend income earned, we find that the Ld. CIT(A) after relying upon various decisions held that section 14A is not applicable to Life Insurance Company. The Tribunal has reiterated the same view in the above cases that provisions of section 14A will not apply to Insurance companies10. Lastly, with regard to ground no. 4, that is, disallowing exemption under section 10(34) with regard to the dividend income earned, we find that the Ld. CIT(A) after relying upon various decisions held that section 14A is not applicable to Life Insurance Company. The Tribunal has reiterated the same view in the above cases that provisions of section 14A will not apply to Insurance companies, whose income are strictly assessable in terms of Rules of the Insurance Act. Thus, respectfully following the same, we affirm the order of the CIT(A) and dismissed the ground raised by the revenue. Accordingly, grounds raised by the revenue are dismissed.” 20. Respectfully following the order of the Tribunal (supra), these grounds of revenue stands dismissed. 9.4. During the course of hearing both the sides had agreed that Ground 7 raised by the Revenue in appeal for the Assessment Year 2018-19 was identical to Ground No. 7 raised by the Revenue in appeal for the Assessment Year 2013-14 and that there was no change in the attendant facts or the applicable law. Further, there is no dispute to the fact that the Ground 7 raised by the Revenue is appeal for the Assessment Year 2018-19 was dismissed by the Tribunal as above. Therefore, given the facts and circumstances of the present case, we are of the considered view that the non-adjudication of the Ground 7 constituted mistake apparent from record which is hereby rectified. The Ground No. 7 raised by the Revenue in ITA No. 1897/MUM/2023 pertaining to Assessment Year 2013-14 is dismissed and following paragraph (Numbered 31.1) is inserted between paragraph 31 and 32 of the Common Order: MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 9 “31.1 Ground No. 7 of the revenue’s appeal is similar to Ground No. 7 of Revenues’ appeal for the Assessment Year 2018-19 (supra), and since there is no change in fact or law, applying the ratio mutatis mutandis, we dismiss the Ground No. 7 of appeal of the Revenue, 10. In view of the above, the present application filed by the Assessee is allowed and the Common Order, dated 31/01/2024, is further rectified to the extent provided in paragraphs 8.3 and 9.4 above. MA No. 234/MUM/2024 (Assessment Year 2018-19) 11. We would next take up Miscellaneous Application No. 234/MUM/2024 filed by the Assessee in ITA No. 1759/MUM/2023 (preferred by the Revenue) pertaining to Assessment Year 2018-2019 seeking rectification of Common Order, dated 31/01/2024. 11.1. Vide letter dated, 15/11/2024, the Assessee has sought withdrawal the present application. Accordingly, the present miscellaneous application is dismissed as withdrawn. In conclusion 12. MA. No.238/MUM/2023 and MA. No.233/MUM/2023 are allowed while MA. No.234/MUM/2023 is dismissed Order pronounced on 06.03.2025. Sd/- Sd/- (Narendra Kumar Billaiya) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंकDated : 06.03.2025 Divya Nandgaonkar, Stenographer MA No.233, 234 & 238 /Mum/2024 Assessment Year 2013-14 & 2018-19 10 आदेशकीप्रतितितिअग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी/ The Appellant 2. प्रत्यर्थी/ The Respondent. 3. आयकरआय क्त/ The CIT 4. प्रध न आयकर आय क्त/ Pr.CIT 5. दिभ गीयप्रदिदनदध, आयकरअपीलीयअदधकरण, म ुंबई/ DR, ITAT, Mumbai 6. ग र्डफ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपिप्रदि //True Copy// उप/सह यकपुंजीक र /(Dy./Asstt.Registrar) आयकरअपीलीयअदधकरण, म ुंबई / ITAT, Mumbai Sr. No. Details Date Initials Designation 1 Draft dictated on/Draft dictation sheets are attached/Dictated directly on PC Sr.PS/PS 2 Draft Placed before author Sr.PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member JM/AM 5 Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6 Order pronouncement on Sr.PS/PS 7 File sent to the Bench Clerk Sr.PS/PS 8 Date on which the file goes to the Head clerk 9 Date on which file goes to the AR 10 Date of Dispatch of order "