आयकर अपीलीय अिधकरण, ’डी’ (cid:586)ायपीठ, चे(cid:580)ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI (cid:373)ी एस.एस. िव(cid:695)ने(cid:361) रिव, (cid:586)ाियक सद(cid:735) एवं (cid:373)ी जगदीश, लेखा सद(cid:735) के सम(cid:407) ।

Before Shri S.S. Viswanethra Ravi, Judicial Member &

Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. Nos.1759/Chny/2019, 182 & 183/Chny/2021, 430/Chny/2022 and 683/Chny/2023 िनधा(cid:330)रण वष(cid:330)/Assessment Years: 2014-15, 2015-16, 2016-17 & 2017-18 United India Insurance Co. Ltd., Vs. The Principal Commissioner of O/o The Chief Manager, CFAC Income Tax – 3, Department, Head Office, United India Chennai 600 034.

Nalanda, Door No. 19, Ground Floor, 4^th Lane, Utamar Gandhi Salai, Chennai 600 034.

[PAN:AAACU5552C]

(अपीलाथ(cid:334)/Appellant) ((cid:366)(cid:529)थ(cid:334)/Respondent)

अपीलाथ(cid:334) की ओर से / Appellant by : Shri S. Sundararaman, CA (cid:366)(cid:529)थ(cid:334) की ओर से/Respondent by :

Ms. V. Pushpa, Sr. Standing Counsel (virtual)

सुनवाई की तारीख/ Date of hearing : 07.10.2025 घोषणा की तारीख /Date of Pronouncement : 05.01.2026 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

The appeal in ITA No. 1759/Chny/2019 filed by the assessee is directed against the order dated 29.03.2019 passed by the ld. Principal Commissioner of Income Tax-3, Chennai for the assessment year 2014- 15. The appeals in ITA No. 182 & 183/Chny/2021 are filed by the assessee against different orders both dated 28.03.2021 passed by the ld. PCIT-3, Chennai for the assessment 2015-16 and 2016-17. The appeal in ITA No. 430/Chny/2022 is filed by the assessee against the order of the ld. PCIT-3, Chennai dated 31.03.2022 for the assessment year 2017-18. The appeal in ITA No. 683/Chny/2023 is filed by the assessee against the corrigendum order of the ld. PCIT-3, Chennai dated

29.03.2023 for the assessment year 2017-18.

2. Since, the issues raised in these appeals are similar based on the same identical facts, with the consent of both the parties, we proceed to hear all the appeals together and pass consolidated order for the sake of convenience.

3. First, we shall take appeal in ITA No. 1759/Chny/2019 - AY 2014-

15 for adjudication.

4. Ground No. 1 is general in nature and requires no adjudication.

5. Ground No. 2 to 5 raised by the assessee in challenging the action of the ld. PCIT in passing revision order under section 263 of the Income Tax Act, 1961 [“Act” in short] by holding that the assessee is not entitled to claim deduction under section 10(38) of the Act towards profit on sale of investments.

6. Brief facts as emanating from the record, it is noted that the appellant assessee claimed the profit on sale of investments to an extent of ₹.377,22,70,740/- as exempt under section 10(38) of the Act. According to PCIT, the profit on sale of investments shall not be excluded for the purpose of computation of profits and gains of business as per Rule 5(b)(i) of First Schedule and since the assessee had excluded such profit on sale of investments while computing the taxable income, which was allowed as exempt under section 10(38) of the Act by the Assessing Officer in the scrutiny proceedings, the PCIT held that the assessment order dated 29.12.2016 passed under section 143(3) of the Act by the Assessing Officer is erroneous and prejudicial to the interest of Revenue. Accordingly, the ld. PCIT invoked the provisions of section 263 of the Act and issued show-cause notice dated 08.02.2019 to the assessee.

7. In response to the show-cause notice, the assessee filed written submissions on 18.02.2019 & 05.03.2019, which are reproduced in page 4 to 7 of the impugned order. After considering the submissions of the assessee, the ld. PCIT observed that the Assessing Officer has not specifically examined and failed to apply the amended provisions to First Schedule of Rule 5 of the IT Rules read with section 44 of the Act.

8. Further, he observed, the assessee claimed an amount of ₹.377,22,70,740/- out of its profits as exem