IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘H’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.2745/Del/2024 [Assessment Year: 2017-18]

Assistant Commissioner of M/s Oriental Insurance Co. Ltd., Income Tax, A-25/27, Oriental House, Asaf Ali Circle-10(1), Vs Road, New Delhi New Delhi-110002 PAN- AAACT0627R Revenue Assessee Assessee by Shri Tarandeep Singh, CA Revenue by Shri Amit Katoch, Sr. DR Date of Hearing 28.10.2024 Date of Pronouncement 24.01.2025

ORDER

PER BRAJESH KUMAR SINGH, AM, This appeal filed by the Revenue is directed against the order dated

26.03.2024 of the National Faceless Appeal Centre (NFAC)/Ld. Commissioner of Income Tax (Appeals), Delhi, arising out of order dated 30.09.2021 under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) relating to Assessment Year 2017-18.

2. The grounds of appeal raised by the Revenue are as under:-

1) "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred, in deleting the addition of Rs. 1103,09,03,443/- on account of profit on sale of investment (normal provision)?

2) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred, in deleting the disallowance of Rs. 2,30, 10,949/- on account of U/s 14A of the Act (normal provision and provision u/s 115JB of the Act)?

3) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred, in deleting the addition of Rs. 4,70,60,000/- on account of provision made for Standard Assets?

4) Whether on the fact and circumstances of the case CIT(A) was correct on fact that the view of Hon'ble High court in the case of Oriental Insurance Co. Ltd. V. DCIT order dated 30.08.2017 is in favor of assessee ignoring the fact the Hon'ble High court supports the view of the Revenue that profit from sale of investment is taxable w.e.f. A. Y. 2011-12 and issue of applicability of section 10(38) was not before the court.”

3. Brief facts of the case:- The assessee is a Public Sector Undertaking of Government of India and is in the business of Non-Life Insurance, The assessee offers insurance covers for large projects like power plants, petrochemical, steel and chemical plants. It also offers various insurance products like Motor Policies, Health-Medi- claim/Overseas Medi-claim Personal Accident, Motor Vehicle, Agriculture/ Sericulture / Poultry, Aviation, Marine and other miscellaneous policies. The assessee company had filed its return of income on 27.10.2017 declaring total income at Rs. Nil (Loss of Rs. 3244,79,35,245 ). Subsequently, the return of income was revised by the assessee on 14.03.2019, wherein, the assessee declared loss of Rs.(-) 3244,79,35,245/- under normal provisions of the Income tax Act. 1961 ('Act') and book profit of Rs. (-)2170,61,02,786/- under 115JB i.e. MAT scheme.

4. At the very outset, the ld. Counsel for the assessee stated that all the issues have been considered and decided by this Tribunal in favour of the assessee in assessee’s own case in earlier Assessment Years. The Ld. Counsel for the assessee filed a brief synopsis in respect of all the above four grounds along with copy of the relevant judgments. The brief synopsis filed by the ld. Counsel for the assessee is reproduced as under:-

5. The Ld. DR supported the order of the Assessing Officer but could not bring any distinguishing facts or any decision in favour of the

Revenue in respect of the grounds of the appeal filed by it.

6. We have considered the rival submissions and perused the materials available on record. In respect of ground nos. 1 and 4, the Co-

ordinate Bench of the Tribunal in the latest order vide dated 31.07.2023 in ITA No.6444/Del/2019 for Assessment Year 2016-17 allowed the appeal of the assessee by observing as under:-

5. Issues raised vide ground No.1 with all its sub grounds was considered by this Tribunal in ITA No.1952/Del/2018 and 1750/Del/20