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ICICI Lombard General Insurance Company Limited has received a favorable order from the Commissioner of Income Tax (Appeals) in Mumbai, providing relief on several income tax appeals. The total tax in dispute, for which relief has been granted, amounts to ₹174,61,51,061.
The company had filed appeals against assessment orders for Assessment Years 2012-13, 2015-16, 2016-17, and 2017-18. The Commissioner of Income Tax (Appeals) has allowed all substantive grounds raised in the appeals, including exemptions on interest income, dividend income, and profit on the sale of investments.
For Assessment Year 2015-16, the appeals were allowed on the grounds of the company’s interest income claimed under Section 10(15) of the Income Tax Act, dividend income claimed under Section 10(34/35), and profit on the sale of investments claimed exempt under Section 10(38). Additionally, for Assessment Years 2012-13, 2015-16, 2016-17, and 2017-18, the Commissioner of Income Tax (Appeals) held that the provisions of Section 14A of the Income Tax Act are not applicable to a general insurance company.
This favorable order provides significant relief to ICICI Lombard General Insurance Company Limited, which had been under scrutiny for several years. The company had been disputing various assessments and re-assessments, and this order brings closure to those disputes. The company’s interest income, dividend income, and profits from the sale of investments are now exempt from tax, providing significant savings. This is a major victory for the company, which is one of the largest general insurance companies in India.
The order has far-reaching implications for the company’s financials and future strategy. The company can now focus on growing its business and expanding its reach, rather than worrying about tax disputes. This is a significant milestone for ICICI Lombard General Insurance Company Limited, and it is expected to have a positive impact on its future performance.