Disallowance of claim of deduction by LIC, under Section 80G of the Income Tax Act 1961

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI A BENCH, MUMBAI
[Coram: Pramod Kumar (Vice President)
and Saktijit Dey (Judicial Member)]

ITA No. 3402/Mum/2019
Assessment year: 2007-08

M/s. Life Insurance Corporation of India
Central Office, F & A Department, 3rd Floor,
Yogakshema, Jeevan Bima Marg, Mumbai 400 021
[PAN: AAACL0582H]

Appellant

vs

Deputy Commissioner of Income Tax
1(2)(1), Mumbai
(Currently ACIT 3(2)(1), Mumbai)

Respondent
Appearances by
F.V Irani for the appellant
Rajeet Harit for the respondent
Date of concluding the hearing : July 28, 2021

ORDER

By way of this appeal, the assessee-appellant has challenged the correctness of the order dated 27th March 2019, passed by the learned CIT(A) in the matter of assessment u/s. 143(3) r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the assessment year 2007-08.

2.  It is also submitted that as these additional grounds raise is fundamental jurisdictional issue going to the very root of the legality of the reassessment order, as the adjudication of these grounds of appeal does not require any investigation of facts, and as the admissibility of the additional grounds is supported by the decision of Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. vs Commissioner Of Income Tax, (1998) 229 ITR 383 (SC), the additional grounds may kindly be admitted. In all fairness, learned counsel for the assessee invited our attention to the fact that when this appeal had come up for hearing on an earlier occasion, learned Departmental Representative rampantly opposed admission of the additional grounds of appeal.

3.It is a case of reopened assessment. The aassessment under section 143(3) of the Act was originally completed on 22nd December 2009, assessing the income at Rs. 26,809.96 crores However, on 29th March 2014, the Assessing Officer issued a notice u/s. 148 of the Income Tax Act which was accompanied by reasons for reopening set out in annexure A to the said petition.

4.  For the reasons set out in short while, it is not necessary at this stage to go any deeper into the facts of the case. What is to be seen on these facts is the validity of reopening of the assessment, which is to be examined by us.

5. In brief rejoinder, learned counsel for the assessee pointed out that this judgement is in the context of satisfaction of the Assessing Officer and not the reasons recorded. He also points out that the reasons recorded are not discernible from the judgement. In any case, according to him, the issue stands concluded by the decision of the Hon’ble jurisdictional High Court.

6. In view of the above discussion and keeping in mind the entirety of the case, we uphold the plea of the assessee and reopening of the reassessment proceeding is quashed. We also see no need to address the other grounds of appeal, on merits, which have been, given our findings on the validity of reassessment proceedings, rendered academic and infructuous.

7.In the result, the appeal is allowed in the terms indicated above. Dictated and pronounced in the open court today on the 28th day of July 2021.

Please find attached the enclosed file for the full judgement