UNITED INDIA INSURANCE COMPANY LTD.,CHENNAI V. DCIT CORPORATE CIRCLE 3(1), CHENNAI

ITA 1108/CHNY/2022

AI Insights

The case involves United India Insurance Co. Limited, the appellant, contesting an assessment made by the Deputy Commissioner of Income Tax, Corporate Circle-3(1), Chennai, for the assessment year 2018-19. The primary contention was the non-adjudication of certain issues by the Commissioner of Income Tax (Appeals) in the initial appeal. These issues included objections to additions and disallowances proposed under section 143(1)(a) of the Income Tax Act, and an addition to book profits under section 11538 related to Reserve for Unexpired Risk. The Tribunal found merit in the appellant's request for re-examination of these issues and remitted the matter back to the CIT(A) for a detailed adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472483 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V.PUSHPA; STANDING COUNSEL
• Assessee Lawyers: PAVITHRA
• Section: 143(3)

Judgement Text

" आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य र्क े सिक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.Nos.1108/Chny/2022 यिर्ाारण वर्ा /Assessment Years: 2018-19 United India Insurance Co. Limited, Door No.19, Ground Floor, 4th Lane, Uthamar Gandhi Salai, Chennai-600 034. V s Deputy Commissioner of Income Tax, Corporate Circle-3(1) Chennai. [PAN: AAACU5552C] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी र्की ओर से/ Assessee by : Ms. Pavithra, Advocate प्रत्यर्थी र्की ओर से /Revenue by : Ms.V.Pushpa, Sr.Standing Counsel सुिवाई र्की तारीख/Date of Hearing : 13.02.2025 घोर्णा र्की तारीख /Date of Pronouncement : 19.02.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M : A combined order dated 19.07.2024 was passed in the case of appellant assessee for AYs 2013-14 to 2019-20. The impugned bunch included ITA No.1108/Chny/2022 dated 19.07.2024 for AY- 2018-19. Subsequently, the assessee filed an MA application bearing No. 63/Chny/2024 stating that it had raised an additional ground that the Ld.CIT(A) had not adjudicated its appeal totally and therefore there was a ITA No. 1108/Chny/2022 case for remitting the matter back to Ld.CIT(A) for adjudicating the impugned grievance. 2.0 The assessee had invited reference to the following additional grounds raised by it:- “….ADDITIONAL GROUNDS OF APPEAL 1. The Commissioner of Income Tax (Appeals) (CIT(A)) erred in not adjudicating the following issues raised by the Appellant: a) that the Assessing Officer (AO) had not considered the objections of the Appellant with respect to the additions/disallowances proposed u/s 143(1)(a) of the Act in the assessment order passed u/s 143(3) of the Act, eventhough, he (the AO) had in the order u/s 143(3) of the Act while computing the income assessed included the adjustments proposed in the intimation u/s 143(1)(a) of the Act. b) the addition of Rs. 470,51,72,227/- made to the Book Profits u/s 11538 of the Act relating to Reserve for Unexpired Risk by the AO eventhough no amount had been debited to the Profit & Loss Account but there was only a credit (reversal) to the Profit and Loss Account of a similar amount 2. The Appellant therefore prays that the above additions/adjustments be deleted…” 3.0 As the submissions made by the appellant assessee was found to be correct order dated 28.08.2024 was passed recalling the order dated 19.07.2024 to the extent of issue of non-adjudication of additional ground by the Ld.CIT(A). ITA No. 1108/Chny/2022 4.0 We have heard rival submission in the light of material available on records. It is an undisputed fact of the case that the Ld. CIT(A) has not adjudicated the impugned issues raised by the assessee in the present MA. The Ld.Counsel for the assessee argued that the matter may be restored back to the file of the Ld.AO. It was contended that issue concerning URR has been remitted to the Ld. AO in the order dated 19.07.2024. Ms.V.Pushpa, Ld. Sr.Standing Counsel for the Revenue argued that the assessee, by way of additional grounds, is aggrieved on account of non- adjudication of an issue by the Ld.CIT(A). She further submitted that the same arguments were raised by the assessee during MA proceedings which founded the basis for recall of the order. We have noted that the main grievance of the assessee was on account of non-adjudication of an issue by the Ld.CIT(A). Accordingly, we are of the view that the matter deserves to be remitted back to the Ld.CIT(A) for readjudication. We accordingly, direct the Ld.CIT(A) to readjudicate the issue after giving due opportuning of being heard to the assessee and by passing a speaking order. The Ld.CIT(A) shall be at liberty to call for remand report from the Ld.AO in the matter, if deemed necessary. The additional ground of appeal raised by the assessee in ITA No.1108/Chny/2022 dated 19.07.2024 for AY- 2018-19 is therefore allowed for statistical purposes. ITA No. 1108/Chny/2022 5.0 In the result the appeal of the assessee is allowed for statistical purposes. Order pronounced on 19th , February-2025 at Chennai. Sd/- ( एबी टी. वर्की) (ABY T VARKEY) न्यायिर्क सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, यदिांर्क/Dated: 19th , February-2025. KB/- आदेश र्की प्रयतयलयप अग्रेयर्त/Copy to: 1. अपीलार्थी/Assessee: 2. प्रत्यर्थी/Revenue 3. आिर्कर आिुक्त/CIT - Chennai 4. यवभागीि प्रयतयियर्/DR 5. गार्ा फाईल/GF "