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TMI Blog2015 (9) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/8th membership receipt amounts as income and safety bonus claim of Rs. 1,24,76,016/-, in proceedings under Section 143(3) of the Income-tax Act, 1961 (in short 'the Act'). 2. For the sake of convenience and brevity, we proceed assessment year-wise in dealing with these appeals. I.T.A. No. 2957/Mds/2014 (Assessment Year 2008-09) 3. The Revenue's pleadings in this case challenge the CIT(Appeals)'s action in allowing the assessee's claim offering only 1/8th of membership receipts received during the relevant previous year as its income and also in deleting disallowance of safety bonus claim of Rs. 1,24,76,016/-. 4. The assessee-company promotes safety amongst vehicle owners through insurance. It had filed its return on 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. Extract from the orders of the Honourable ITAT bench "B", Chennai in ITA No.1651/Mds/2010 dated 16-12-2010 for the assessment year 2007-08 is given below: "We have perused the orders and heard the rival contentions. In so far as ground Nos.2 and 3 are concerned, these are similar to the grounds raised by the Revenue for assessment year 2006-07. In its order dated 25th June, 2010 after considering ground Nos.2 and 3 of the Revenue, this Tribunal in I.T.A. No. 457/Mds/2010 for assessment year 2006-07 decided as follows:- 3. As clear from the grounds itself, the first issue is regarding membership fee receipt. Ld. CIT(A) relied on this Tribunal's order in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the relevant findings. The Revenue had sought to tax the similar membership advances in the relevant year of receipt in earlier assessment years as well. The assessee produces copy of the co-ordinate bench decision (supra) rejecting this course of action. The Revenue only submits that the issue has not attained finality as its appeals are pending before the hon'ble jurisdictional high court. We observe that this plea does not form a valid ground to adopt a different action in the present case. The CIT(Appeals)'s findings are affirmed. 7. The Revenue's second substantive ground seeks restoration of safety bonus disallowance of Rs. 1,24,76,016/- deleted in lower appellate order. The assessee had credited this amount being excess prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant period on the basis of the Law of probability as adopted and accepted internationally in the field of insurance. The appellant filed the estimates which were accepted by the CIT(A). The CIT(A) directed the Assessing Officer to allow Safety Bonus liability as per Actuarial valuation. Against the CIT(A)'s orders, the department filed appeal before the ITAT. The ITAT, Chennai has dismissed the departmental appeal. The details of ITAT's orders for the assessment years 2001-02 to 2007-08 have already been furnished in the earlier part of this order. The facts of the case for the year under consideration are the same as those for the earlier years. Respectfully following the Honourable ITAT's decisions quoted above, wherein it was held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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