| The Tax Publishers2020 TaxPub(DT) 3393 (SC) : (2020) 273 TAXMAN 0187 INCOME TAX ACT, 1961
Section 261 Sections 9, 44 & 115JB
Where the Department preferred SLP to appeal against the judgment of Madras High Court in CIT v. United India Insurance Co. [Tax Case Appeal Nos. 323, 324, 326, 328 to 338, 340, 341, 343 to 345 of 2019 & C.M.P. Nos. 12062, 12064, 12073, 12080 to 12084, 12086 to 12088 of 2019, dt. 14-6-2019] : 2019 TaxPub(DT) 5231 (Mad-HC), whereby the High Court held that (i) following decision of High Court of Delhi in Oriental Insurance Co. Ltd. (2018) 407 ITR 658 (Del) : 2017 TaxPub(DT) 3931 (Del-HC), prior to 1-4-2011, there was no provision which required the Revenue to disallow the deduction of loss on sale of investments made by general insurance companies, hence, same could not have been disallowed, (ii) where assessee paid survey fees to various non-resident surveyors outside country, since entire services of surveyors were rendered outside country, assessee was not liable to deduct TDS on survey fees paid by it to surveyors, (iii) provisions of section 115JB are not applicable to insurance companies, and (iv) in view of decision in case of CIT v. Royal Sundaram Alliance Insurance Co. (T.C. (A), No. 41 of 2019, dated 18-1-2019), assessee insurance company was not liable to deduct tax at source on commission paid by it to several insurance companies for receiving reinsurance premium from them, the Supreme Court granted leave to Department to appeal thereagainst and directed the Registry to tag the matter along with Civil Appeal No. 7681 of 2019.
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Appeal (Supreme Court) - Special leave petition - Income deemed to accrue or arise in India - Minimum alternate tax--Deduction of tax at source on insurance commission
Department preferred SLP to appeal against the judgment of Madras High Court in CIT v. United India Insurance Co. [Tax Case Appeal Nos. 323, 324, 326, 328 to 338, 340, 341, 343 to 345 of 2019 & C.M.P. Nos. 12062, 12064, 12073, 12080 to 12084, 12086 to 12088 of 2019, dt. 14-6-2019] : 2019 TaxPub(DT) 5231 (Mad-HC), whereby the High Court held that (i) Following decision of High Court of Delhi in Oriental Insurance Co. Ltd. (2018) 407 ITR 658 (Del) : 2017 TaxPub(DT) 3931 (Del-HC), Prior to 1-4-2011, there was no provision which required the revenue to disallow the deduction of loss on sale of investments made by general insurnace companies, hence, same could not have been disallowed. (ii) where assessee paid survey fees to various non-resident surveyors outside country, since entire services of surveyors were rendered outside country, assessee was not liable to deduct TDS on survey fees paid by it to surveyors, (iii) provisions of section 115JB are not applicable to insurance companies, and (iv) in view of decision in case of CIT v. Royal Sundaram Alliance Insurance Co. (T.C. (A), No. 41 of 2019, dated 18-1-2019), assessee insurance company was not liable to deduct tax at source on commission paid by it to several insurance companies for receiving reinsurance premium from them. Held: The Supreme Court granted leave to Department to appeal thereagainst.
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