DCIT Vs Indusind General Insurance Company Limited (ITAT Mumbai)
Summary: The Income Tax Appellate Tribunal, Mumbai Bench, disposed of a consolidated batch comprising Revenue’s appeals for Assessment Years 2011-12 to 2018-19 and 2020-21 and the assessee’s appeals for Assessment Years 2012-13 and 2020-21. The appeals arose from orders of the Commissioner of Income-tax (Appeals) concerning, among other matters, disallowances relating to payments made to motor vehicle dealers. The Tribunal, however, decided the batch on a preliminary legal issue arising from a subsequent insolvency resolution process and did not adjudicate the merits of the individual additions or disallowances.
The assessee, now IndusInd General Insurance Company Limited and formerly Reliance General Insurance Company Limited, was an unlisted subsidiary of Reliance Capital Limited (RCL), which held approximately 99.83% of its equity share capital during the relevant period. RCL was admitted into Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. The NCLT, Mumbai Bench, admitted the insolvency petition on 06.12.2021 and declared a moratorium under Section 14. A Resolution Plan submitted by IndusInd International Holdings Limited was approved by the Committee of Creditors in June 2023 and subsequently approved by the NCLT on 27.02.2024 under Section 31 of the Insolvency and Bankruptcy Code, 2016.
