Markel Capital Limited Vs DCIT (ITAT Mumbai)
Summary: Markel Capital Limited, a company incorporated in and tax resident of the United Kingdom and engaged in insurance/reinsurance business, filed an appeal before the Mumbai Bench of the Income Tax Appellate Tribunal against the final assessment order dated 29.12.2025 passed by the Deputy Commissioner of Income Tax (International Taxation), Circle 3(2)(1), Mumbai under section 143(3) read with section 144C(13) of the Income-tax Act, 1961. The assessment followed directions dated 08.12.2025 issued by Dispute Resolution Panel-3, Mumbai under section 144C(5).
The assessee had filed its return of income on 28.11.2022 declaring total income of Rs.29,28,390/- under the normal provisions of the Act and book profit of Rs.2,76,79,197/- under section 115JB. During the year, it entered into international transactions with its Associated Enterprises.
The Transfer Pricing Officer, by order dated 28.01.2025 under section 92CA(3), determined the arm’s length price of payments for support services at NIL and proposed aggregate transfer-pricing adjustment of Rs.13,35,91,039/-. This comprised Rs.7,87,99,410/- paid to Markel Services India Private Limited and Rs.5,47,91,629/- paid to Markel International Services Limited. The draft assessment order dated 13.03.2025 also proposed an addition of Rs.7,71,90,607/- to book profit concerning the Reserve for Unexpired Risks. The DRP rejected the objections and the Assessing Officer subsequently passed the final assessment order assessing total income at Rs.13,65,19,430/- under the normal provisions and computing book profit at Rs.10,48,69,804/-.
