ICICI Lombard General Insurance Company Limited has received a favorable order from the Commissioner of Income Tax (Appeals) in Mumbai, providing relief on several appeals for Assessment Years 2012-13, 2015-16, 2016-17, and 2017-18. The total tax in dispute, amounting to ₹ 174,61,51,061, has been granted relief.
The company had filed appeals against assessment orders passed under Section 143(3) of the Act for Assessment Years 2016-17 and 2017-18, and re-assessment orders passed under Section 143(3) read with Section 147 of the Act for Assessment Years 2012-13 and 2015-16. The Commissioner of Income Tax (Appeals) has allowed all substantive grounds raised in these appeals.
Specifically, the appeals for Assessment Year 2015-16 were allowed on the grounds of interest income claimed under Section 10(15) of the Act, dividend income claimed under Section 10(34/35) of the Act, and profit on the sale of investments claimed exempt under Section 10(38) of the Act. The Commissioner of Income Tax (Appeals) also held that the provisions of Section 14A of the Act, which deals with disallowance of expenses in relation to the income exempt under the Act, are not applicable to a general insurance company.
This favorable order provides significant relief to ICICI Lombard General Insurance Company Limited, reducing the tax liabilities for the specified assessment years. The company’s exchange filing did not disclose the reasons for the appeals or the assessment orders, but the outcome is a significant victory for the company.