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2015 (9) TMI 1099 - AT - Income TaxRectification proceedings - whether the process of reasoning adopted by the Tribunal, in relying upon the IRDA guidelines which find no mention in the Income Tax Act, and in holding that only pure life insurance policies are covered by Section 10(10D), was a mistake apparent on record or nor? - Held that:- The order passed by the Tribunal did suffer from mistake apparent from record inasmuch as, without adjudicating upon the specific submissions of the assesse, the Tribunal proceeded to decide the matter on the basis of the IRDA circulars. The Tribunal has held that these circulars are clarificatory and, therefore, retrospective in effect. The alternate contention was picked up for disposal without dealing with the core contention. It is a wholly academic issue as to whether these circulars are prospective or retrospective. That aspect of the matter could be relevant only in case the circulars are held to be binding at all. We, therefore, recall the order of ITAT for the purposes of adjudicating upon the plea of the assessee to the effect that, on the facts of this case, the IRDA circulars have no role to play in deciding whether the premium on the insurance policies paid are covered by the scope of ‘keyman insurance policy’ under section 10(10D) of the Act, and for deciding the matter afresh in the light of the said adjudication. We have noted that an earlier decision of this Tribunal, in the case of Shri Nidhi Corporation Vs Additional CIT [2014 (2) TMI 1022 - ITAT MUMBAI], was not taken into account by the Tribunal, while disposing of the matter, as the said order, though passed earlier, was not in public domain by that point of time. Now that the matter is going back to the Tribunal for fresh consideration, needless to say, this decision will also have to be taken into account.
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