2016 (6) TMI 1439 - HC - Income Tax

Exemption u/s 10(34) - Assessment of Income of the life Insurance Business - Dividend income of the assessee as exempt u/s 10(34) - income of the assessee engaged in the Life Insurance Business is computed under the non obstante clause of Section 44 of the Act ? - HELD THAT - We find that in allowing the respondent assessee's appeal the impugned order of the Tribunal followed its own decision in Life Insurance Corporation of India 2013 (6) TMI 377 - ITAT MUMBAI for Assessment Years 2007-08 to 2009-10 on an identical issue. Mr. Chhotaray fairly states that being aggrieved by the orders of the Tribunal passed in Life Insurance Corporation of India (supra) the revenue preferred three appeals to this Court 2015 (9) TMI 1718 - BOMBAY HIGH COURT - All three appeals raising an identical issue as herein were dismissed by this Court on 15th September, 2015. In the above view, as the issue stands settled against the revenue by a decision of this Court the question as proposed does not give rise to any substantial question of law.

Summary

Issues involved:
Challenge to order of Income Tax Appellate Tribunal regarding exemption of dividend income under Section 10(34) of the Income Tax Act for Assessment Year 2006-07.

Detailed Analysis:
The High Court was presented with an appeal challenging the order of the Income Tax Appellate Tribunal (the Tribunal) dated 11th July, 2013 concerning the Assessment Year 2006-07 under Section 260A of the Income Tax Act, 1961. The primary question raised in this appeal was whether the Tribunal was justified in exempting the dividend income of the assessee under Section 10(34) of the Act without considering the application of the non obstante clause of Section 44 of the Act to the income of the assessee engaged in the Life Insurance Business.

The High Court noted that the Tribunal had based its decision on a previous ruling in Life Insurance Corporation of India Vs. ACIT for Assessment Years 2007-08 to 2009-10, which was also challenged by the revenue in three appeals before the Court. However, all three appeals were dismissed by the Court on 15th September, 2015, thereby settling the issue against the revenue. As a result, the High Court concluded that since the matter had already been decided by the Court in a previous case, the question raised in the present appeal did not give rise to any substantial question of law and, therefore, was not entertained.

Consequently, the High Court dismissed the appeal, and no specific orders were made regarding costs in the matter. The decision was based on the settled position of law established by the Court's previous ruling in a similar case involving the exemption of dividend income under Section 10(34) of the Income Tax Act.