IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘C’ BENCH AT KOLKATA Before SHRI GEORGE MATHAN, JUDICIAL MEMBER &

SHRI RAKESH MISHRA, ACCOUNTANT MEMBER ITA Nos.: 2803, 2804, 2805 & 2806/KOL/2025 Assessment Years: 2018-19, 2022-23 & 2023-24 National Insurance Company DCIT, Circle-5(1), Kolkata Limited Vs.

(Appellant) (Respondent)

PAN: AAACN9967E Appearances:

Assessee represented by : S. Bhattacharya, CA.

Department represented by : Praveen Kishore, CIT (DR).

Date of concluding the hearing : 04-February-2026 Date of pronouncing the order : 12-February-2026

ORDER

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

These four appeals filed by the Assessee are against the separate orders of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AYs 2018-19, 2022-23 & 2023-24 dated 25.09.2025. Since the issues are common or related, all the appeals were heard together and are being decided vide this common order for the sake of convenience and brevity.

2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

I. ITA No.: 2803/KOL/2025:

“1) That the Ld. Commissioner of Income-tax (Appeals), NFAC was wrong in sustaining the Penalty of Rs. 11,52,05,880 levied u/s 270A in respect of the disallowance made of the expenditure in excess of limit prescribed under the IRDA Regulations read with Section 40C of the Insurance Act, 1938, without properly appreciating the explanations and evidences furnished during the proceedings, and the same ought to be deleted.

2) That without prejudice to the contention raised in Ground No. (1) above, the Ld. Commissioner of Income-tax (Appeals), NFAC failed to appreciate that there had not occurred any case of misreporting of Income which could lead to the levying of any Penalty u/s 270A and thus he erred in confirming levying of Penalty of Rs.11,52,05,880.

3) That the appellant craves leave to add, delete or modify any Ground or Grounds of Appeal before or at the time of the Hearing of the Appeal.”

II. ITA No.: 2804/KOL/2025:

“1. That the Ld. Commissioner of Income-tax (Appeals), NFAC was wrong in confirming the action of the Assessing Officer in disallowing Rs.16,64,44,000/- being the Expenditure incurred in excess of the specified limit u/s 40C of the Insurance Act, 1938, read with IRDAI Regulations, debited to the Profit and Loss Account.

2. That without prejudice to the contention raised in Ground No. (1) above, the Ld. Commissioner of Income-tax (Appeals), NFAC failed to appreciate that the Expenses aggregating to Rs. 16,64,44,000/- having been incurred wholly and exclusively for the purposes of the Business of the appellant, should have been held to be allowable u/s 37(1) of the Income-tax Act, 1961 and thus he erred in confirming the disallowance of the said Expenses of Rs. 16,64,44,000/-.

3. That without prejudice to the contentions raised in Grounds Nos. (1) and (2) above, the Ld. Commissioner of Income-tax (Appeals) erred in holding that the excess management expenditure was hit by Explanation 1 to Section 37(1), failing to appreciate that the disallowance under the IRDA/Insurance Act regulations related only to the allocation of expenses and had not rendered the expenditure itself illegal or unlawful for the purpose of disallowance under the Income-tax Act.

4. That the appellant craves leave to add, delete or modify any Ground or Grounds of Appeal before or at the time of the Hearing of the Appeal.

IIII. ITA No.: 2805/KOL/2025:

“1. That the Ld. Commissioner of Income-tax (Appeals), NFAC was wrong in confirming the action of the Assessing Officer in disallowing Rs.8,74,19,000/- being the Expenditure incurred in excess of the specified limit u/s 40C of the Insurance Act, 1938, read with IRDAI Regulations, debited to the Profit and Loss Account.

2. That without prejudice to the contention raised in Ground No. (1) above, the Ld. Commissioner of Income-tax (Appeals), NFAC failed to