Is income from pension fund exempt when the profit of the company is taxable u/s 44 of the Income Tax Act?

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH “C”, MUMBAI
BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER &
SHRI M.BALAGANESH, ACCOUNTANT MEMBER
आअसं. 6725/मुं/2019 (􀇓न. व. 2016-17)
ITA No. 6725/MUM/2019 (A.Y.2016-17)
DCIT-12(2)(2),
Room No. 128F, 1st Floor,
Aayakar Bhavan, Churchgate,
Mumbai-400020

Vs.

M/s India First Life Insurance Co. Ltd.
B-301, Tril IT 4, Filmcity Road,
Malad (East),
Mumbai-400097.
PAN: AADCB6215G

Appellant by : Sh. R.K. Sahu
Respondent by : Shri Farookh V. Irani

Date of hearing : 09/08/2021

Date of pronouncement : 30/08/2021

ORDER

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-20, Mumbai [hereinafter referred to as ‘the CIT(A)’] dated 30.08.2019 for Assessment Year (AY) 2016-17.

2. Sh. Farookh V. Irani appearing on behalf of the assessee submitted at the outset that the issues raised in ground no. 1 & 2 of the appeal by the Revenue have been considered by the Tribunal in preceding AYs in assessee’s own case and have allowed the same in favour of the assessee. The ld. Counsel for the assessee submitted that in ground no.1 of appeal, the Revenue has assailed the findings of CIT(A) in excluding income from Pension fund Rs. 17,52,19,809/- under section 10(23AAB) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’].

3. We have heard the submissions made by rival sides and have examined the orders of authorities below. Both sides are unanimous in stating that the issue raised in ground no. 1 & 2 of appeal have been considered by the Tribunal in the preceding AYs in assessee’s own case. We find that in AY 2013- 14 in ITA No. 1912/Mum/2018 (supra), the Revenue had raised ground assailing exemption allowed to the assessee by the ld. CIT(A) u/s. 10(23AAB) of the Act. The co-ordinate bench upheld the order of CIT(A) thereby confirming assessee’s claim of exemption under section 10(23AAB) of the Act.

4. We find similar view has been taken in the case of ICICI Prudential Insurance v/s. ACIT (supra), IDBI Federal Life Insurance Co. Ltd. (supra) and Birla Sunlife Insurance Co. Ltd. (supra). No contrary decision has been brought to our notice by the Revenue. Therefore, in the light of above decisions, we hold that the provisions of section 14A are not attracted in the case of Insurance Companies.

Order pronounced in the open court on Monday, the 30th day of August, 2021.

Please find attached the enclosed file for the full judgement