The court upheld that prior judicial decisions are binding, necessitating that tax computations for life insurance profits follow established provisions of law. Incorrect jurisdiction claims in tax assessments were quashed.

ORDER :

S. R. KRISHNA KUMAR, J.

1. In this petition, petitioner seeks the following reliefs:-

“(i) Quashing the order bearing Letter No. ITBA/AST/F/17/2019-20/1017906693(1) dated 11.09.2019 (Annexure – L) passed by the 1^st Respondent rejecting the Petitioner’s objection as to his jurisdiction in respect of the assessment year 2014-15;

(ii) quashing the notice bearing No. ITBA/AST/S/148/2018-19/1015567834(1) dated 30.03.2019 (Annexure- G) issued by the 1^st Respondent under Section 148 read with Section 147 of the Act for the assessment year 2014-15; and

(iii) pass such other or further order as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interest of justice and equity.”

2. Heard learned Senior Counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that while the present proceedings relate to the assessment year 2014-15, proceedings in relation to the earlier assessment years viz., 2011-12, 2012-13 and 2013-14 culminating in an order dated 30.08.2021 passed by the Hon’ble Division Bench of this Court in I.T.A.No.128/2018 C/w I.T.A.No.181/2017 and I.T.A.No.436/2018 whereby the appeals filed by the respondents – revenue were dismissed by the Hon’ble Division Bench arising out of the very same issue and subject matter which is involved in the present petition. It is therefore submitted that the present petition deserves to be allowed by quashing the impugned letter and notice issued by the 1^st respondent.

4. Per contra, learned counsel for the respondents does not dispute the fact that the subject matter of the present petition is identical to the subject matter of the proceedings involved before the Hon’ble Division Bench in I.T.A.No.128/2018 C/w I.T.A.No.181/2017 and I.T.A.No.436/2018 in respect of the petitioner’s own case in relation to the earlier assessment years and appropriate orders may be passed by making the said order subject to the disposal of C.A.No.3921/2016 pending before the Apex Court.

5. In I.T.A.No.128/2018 C/w I.T.A.No.181/2017 and I.T.A.No.436/2018, the Hon’ble Division Bench of this Court has held as under:

“Since akin and common issues are involved in these matters, the same are clubbed, heard together and disposed of, by this common Judgment.

2. These appeals are filed by the revenue under Section 260 A of the Income Tax Act,1961 [Act’ for short] against the order of the Income Tax Appellate Tribunal, Bengaluru Bench(Bengaluru) (‘the Tribunal’ for short), relating to the assessment year 2011-2012 in ITA No.181/2017, assessment year 2012-13 in 128/2018 and assessment year 2013-14 in No.436/2018.

3. The matters were admitted to consider the following substantial question of law raised in the appeals:-

“(1) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in deciding that assessee – company has correctly computed profits of Life Insurance business even though the assessee – company was not complying with the provision of Section 44 red with First Schedule of the IT Act and Section 115B of the IT Act ?

(2) Whether on the facts and in the circumstances of the case, Tribunal is correct in law in interpreting the special provision under Section 44 of the IT Act while granting benefits to assessee- company?”

4. The assessee Company is engaged in the business of life Insurance and filed return of income declaring loss which was computed by aggregating its reporting under shareholders account and policy holders account as prescribed under Insurance Regulatory and Development Authority(IRDA for sho