9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 1760 - AT - Income TaxDisallowance of claim of loss from pension fund business - HELD THAT - As the amended provisions of section 10(34) of the Act, whereby the words other insurer engaged in pension fund are included, we find that the finding of the CIT (A) on the first issue is fair and reasonable. As such, the judgment of the Hon‟ble High Court of Bombay in the case of LIC of India Ltd 2011 (8) TMI 47 - BOMBAY HIGH COURT is directly on the issue. Accordingly, the claim of the loss of Pension Fund is an allowable claim Treatment to dividend income exempt u/s 10(34) of the Act qua the exclusion for computation of income of insurance business - HELD THAT - Qua the provisions of section 44 of the Act, we find that the finding of the CIT (A) in para 5.3 of his order is fair and reasonable as the same is taken based on the various binding judicial precedents in the cases of LIC vs. Addl. CIT. 1977 (11) TMI 25 - BOMBAY HIGH COURT , ICICI Prudential Insurance vs. ACIT; 2012 (11) TMI 13 - ITAT MUMBAI , and SBI Life Insurance Company Ltd vs. CIT etc 2014 (5) TMI 1067 - ITAT MUMBAI Accordingly, we affirm the order of the CIT (A) on this issue too. Thus, both the issues raised by the Revenue are allowed in favour of the assessee.
Issues:
1. Disallowance of loss from pension fund. 2. Deduction of dividend income other than from pension scheme. Issue 1: Disallowance of loss from pension fund: The appeal was filed by the Revenue against the order of the CIT (A) for the assessment year 2010-2011, challenging the disallowance of loss from the pension fund. The assessee, engaged in the life insurance and annuity business, had declared a total loss. The CIT (A) granted relief to the assessee, which led to the Revenue's appeal. The Ld AR for the assessee argued that the issues of disallowance of loss from the pension fund business and treatment of dividend income were in favor of the assessee, as supported by the CIT (A)'s order. The Ld DR for the Revenue, while not conceding, agreed with the Ld AR's observations. The Tribunal, after examining the CIT (A) order and the amended provisions of section 10(34) of the Act, found that the CIT (A)'s decision on the disallowance of loss from the pension fund was fair and reasonable. Referring to a judgment of the Hon'ble High Court of Bombay, the Tribunal concluded that the claim of loss from the Pension Fund was allowable. Therefore, the Tribunal dismissed Ground no.1 raised by the Revenue in favor of the assessee. Issue 2: Deduction of dividend income other than from pension scheme: The second issue pertained to the deduction of dividend income under section 10(34) of the Act, excluding income earned from the pension scheme. The CIT (A) had made a fair and reasonable decision based on various judicial precedents, including cases involving LIC, ICICI Prudential Insurance, and SBI Life Insurance Company Ltd. The Tribunal affirmed the CIT (A)'s order on this issue as well, allowing both issues raised by the Revenue in favor of the assessee. Consequently, the appeal of the Revenue was dismissed, and the order was pronounced on 11th January 2017. This judgment by the Appellate Tribunal ITAT MUMBAI addressed the issues of disallowance of loss from the pension fund and the deduction of dividend income other than from the pension scheme. The Tribunal upheld the CIT (A)'s decisions on both issues, ruling in favor of the assessee based on the fairness and reasonableness of the CIT (A)'s orders and relevant legal precedents.
|
