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2017 (9) TMI 1981 - AT - Income TaxTreatment of profits arising on sale / redemption of investments which also includes the amount received on profits on account of amortization - HELD THAT:- The issue arising in the present ground of appeal similar to the issue in earlier years and the Assessing Officer had also disallowed the claim of assessee, following the deletion made in earlier years. However, following the same parity of reasoning, we hold that while computing income from business in the hands of assessee under section 44 of the Act and First Schedule of the Act, profit / loss on sale / redemption of securities or investments including the amortization of securities is to be reduced from taxable income of assessee. The grounds of appeal No.1.1 and 1.2 raised by the assessee are thus, allowed. Disallowance under section 14A of the Act read with Rule 8D - HELD THAT:- Tribunal after considering the issue held the same to be identical to the issue before the Tribunal in assessment year 2003-04 and following the same parity of reasoning deleted the disallowance made by the Assessing Officer and the DRP but confirmed the disallowance made by the assessee under section 14A of the Act at ₹ 49,42,631/-. Following the same parity of reasoning, we direct the Assessing Officer to delete the addition worked out under section 14A of the Act except to the extent of ₹ 2,43,836/-, which has been suo motu disallowed by the assessee in the computation of income. Disallowance u/s 14A of the Act in respect of profits and gains on sale/redemption of investments claimed as non taxable - HELD THAT:- In view of our order holding that the provisions of section 14A are not applicable, then the same even applied for income claimed as exempt under section 10 of the Act. Hence, the grounds of appeal No.1 to 3 raised by the Revenue are dismissed. Disallowance made u/s 40(a)(i) in respect of re-insurance premium paid to Allianz SE, Germany - HELD THAT:- We find that the Tribunal in assessment year 2008-09 [2020 (1) TMI 1566 - ITAT PUNE] has elaborately discussed the issue and had decided the same. The Tribunal reversed the findings of DRP and held that the assessee was entitled to claim the deduction on account of reinsurance premium of ₹ 62.7 crores paid to the Germany company. We find that the issue raised in the ground of appeal No.4 is identical to the issue before the Tribunal and following the same parity of reasoning which are not being reproduced for the sake of brevity, we direct the Assessing Officer to allow the claim of assessee with regard to reinsurance premium of ₹ 69.86 crores paid to the Germany company. The ground of appeal No.4 raised by the assessee is thus, allowed. Disallowing risk inspection charges for want of purchase orders - HELD THAT:- The issue arising in the present appeal before us is identical to the issue before the Tribunal in assessment year 2008-09. Mere absence of purchase orders would not disentitles the assessee from the claim of risk inspection charges. However, we find merit in the plea of assessee that in the absence of any adverse evidences collected during the year, no disallowance is to be made in the hands of assessee in the instant assessment year. The assessee has further filed purchase orders by way of additional evidence before us. However, in the entirety of the ratio laid down in assessee’s own case in assessment year 2008-09, absence of purchase orders would not disentitles the assessee to claim the said expenditure. Accordingly, we allow the claim of assessee in entirety. The ground of appeal No.5 raised by the assessee is thus, allowed.
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