Oriental Insurance Co. Ltd Vs ACIT (ITAT Delhi)
ITAT Delhi following the decision of Delhi HC in assessee’s own case held that profit earned on sale/redemption of investment is not chargeable to tax. Accordingly, appeal allowed to that extent.
Facts- Vide the present appeal, the assessee are challenging the addition of ₹615,70,93,758/- made on account of profit on sale/ redemption of investment and by denying the benefit of exemption u/s 10(38) of the Act.
Further, the assessee are challenging the action of CIT(A) upholding the disallowance of ₹10,15,15,933/- out of total depreciation allowance of ₹35,00,54,939/- claimed by the assessee u/s 32 of the Act.
Conclusion- Hon’ble Delhi High Court in assessee’s own case has held that the ITAT erred in holding that the income earned on sale/redemption of investment was chargeable to tax. Further, coordinate bench of this tribunal in assessee’s own case for assessment year 2010-11 had decided this issue in favour of the assessee. Thus, said ground is allowed.
Held that AO proceeded to disallow 29% of depreciation claimed during the year under consideration and disallowed a sum of ₹10,15,15,933/- in the assessment. This issue was subject matter of adjudication by the coordinate bench of this tribunal in assesses’s own case for Assessment Year 2007-08, wherein this issue was restored to the file of ld AO by following the orders for Assessment Year 2000-01 and 2001-02. Respectfully following the order of this tribunal for Assessment Year 2007-8 in assessee’s own case, the said ground raised by the assessee are restored to the file of AO for consideration in the light of decision taken in earlier years.
