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2023 (8) TMI 325 - AT - Income TaxTDS u/s 194D - payment of ceding commission - Non deduction of TDS - Addition u/s 40(a)(ia) - assessee is a non-resident corporate entity, incorporated under the laws of France and is engaged in the business of providing insurance and reinsurance - HELD THAT:- As identical issued in assessee’s own case in assessment year 2018-19 [2023 (1) TMI 62 - ITAT DELHI] deleted the disallowance made u/s 40(a)(ia) as held that the cedant commission paid by the assessee to the insurance company is actually the share of assessee in the nature of manpower cost, third party administration cost, administration cost, etc. which are actually reimbursement of expenses in relation to the gross premium which the assessee company has received in this regard, so ceading commission cannot be considered to be paid for soliciting or procuring insurance business. Also decided in M/s Royal Sundaram Alliance Insurance Company Limited [2019 (2) TMI 923 - MADRAS HIGH COURT] as held as a matter of industrial practice it was termed as "commission on reinsurance premium received", however, in substance it is discount on re-insurance premium received by an Insurance Company from another Insurance Company. Thus we delete the disallowance made under section 40(a)(ia) - Decided against revenue.
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