ICICI Prudential Life Insurance Company Ltd announced on Friday, September 27, 2024, that it has received an income tax order totaling ₹361.23 crore for the assessment year 2022-23. This order includes ₹275.28 crore in taxes and ₹85.94 crore in interest, as detailed in the company’s stock exchange filing.
The order, issued under Section 143(3) of the Income Tax Act, 1961, by the Assistant Commissioner of Income Tax, Mumbai, addresses various disallowances and income reclassifications. Key concerns raised by the tax authority include the treatment of negative reserves, transfers of funds between shareholders and policyholders, disallowance of exemptions under Section 10, and other adjustments.
In response to this demand, ICICI Prudential intends to appeal the decision, referencing past favorable rulings from courts and tribunals on similar matters. The appeal will be submitted to the Commissioner of Income Tax (Appeals) within the stipulated timeline.
This recent tax order follows an earlier demand that ICICI Prudential received, amounting to ₹429.05 crore from the Deputy Commissioner of State Tax, Maharashtra. This earlier demand, communicated on August 26, 2024, pertains to the financial year 2020 and includes ₹208.02 crore in Goods and Services Tax (GST), ₹200.22 crore in interest, and ₹20.80 crore in penalties. The demand arises from various alleged violations, including issues related to the reversal of input tax credit, discrepancies in ITC and credit notes across different GST returns (GSTR 3B, GSTR 9, and GSTR 2A), and non-payment of tax on certain outward supplies.
ICICI Prudential Life Insurance has reiterated its commitment to addressing these tax demands and plans to file appeals against both the income tax and GST orders within the prescribed timelines, showcasing its proactive approach to compliance and dispute resolution in the complex regulatory landscape.
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