Dismissing the appeal of the revenue the Tribunal held that, provision of section 14A is not applicable in case of insurance business which is governed by specific provisions of section 44 and Schedule-I Tribunal also held that right of respondent under Rule 27 of the ITAT Rules 1963 cannot be worse off visa-a-vis the position when he was when the appeal was presented. Foreign tax credit in respect of taxes paid abroad could never exceed Indian tax liability in respect of related income taxed abroad as also in India. (AY. 2009-10)
ACIT v. Life Insurance Corporation of India Ltd. (2021) 214 TTJ 148/ / 206 DTR 273 / (2022) 192 ITD 8 (Mum.)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Provision is not applicable in case of insurance business which is governed by specific provisions of section 44 and Schedule. I-Foreign tax credit-Foreign tax credit in respect of taxes paid abroad could never exceed Indian tax liability in respect of related income taxed abroad as also in India-Right of respondent under Rule 27 of the ITAT Rules 1963-Appellant cannot be worse off visa-a-vis the position when he was when the appeal was presented. [S. 44, 90, R. 8D, ITAT Rule 27]