Case Law Details
Max Life Insurance Company Ltd. Vs DCIT (ITAT Delhi)
The issue under consideration is whether assessee is liable for exemption u/s 10(34) of the Act without disallowing any expenditure under section 14A?
ITAT noted that this issue is duly covered by decision of Mumbai Bench of this Tribunal in case of ICICI Prudential Insurance Co. Ltd. (supra) in which they gave clearcut finding that assessee is entitled to exemption u/s 10(34) for the dividend income. This decision in our view will not apply w.r.t. the applicability of S. 14A as the applicability or in applicability of S 14A has to be considered at the stage of making computation of income u/s 44. ITAT also do not agree with submission of learned DR since the only activity in shareholders a/c is of investment, it cannot be said that no expenditure was incurred for earning dividend. In this regard, ITAT may state question before us is not whether any expenditure has been incurred or not for earning of dividend but the question relates to the applicability of S. 14A, which issue has already been decided by co-ordinate Bench against Revenue in view of discussion of the order of this Tribunal Mumbai Bench in case of ICICI Prudential Insurance Co. Ltd. (Supra), in which they have followed the decision of Delhi Bench in case of Oriental Insurance Co. Ltd. v Asstt. CIT [2010] 40 SOT 19 (URO). No contrary decision for applicability of S. 10(34) & S. 14A was brought to our knowledge. ITAT accordingly allow the additional ground and direct the Assessing Officer to allow exemption to the assessee under section 10(34) of the Act without disallowing any expenditure under section 14A of the Act.
FULL TEXT OF THE ITAT JUDGEMENT
Aggrieved by the separate orders dated 28.02.2019 in appeals Nos. 06/16-17 and 14/16-17 -New Delhi, passed by the learned Commissioner of Income Tax (Appeals)-22, New Delhi (“Ld. CIT(A)”),for the assessment years 2012-13 to 2013-14, M/s Max Life Insurance Company Ltd. (“the assessee”) and the Department have filed cross-appeals Nos. 4384 & 4385/Del/2019 and appeals Nos. 4634 &4635/Del/2019 respectively, whereas the Revenue has also filed ITA Nos. 4633& 4636/Del/2019 for the same assessment years challenging the impugned orders of learned CIT(A) dated 28.02.2019, whereby the orders u/s. 154 passed by the Assessing Officer were set aside.Since all these appeals emanate from the same set of facts, we deem it just and convenient to dispose them of by way of a common order.
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