Royal Sundaram General Insurance Co. Ltd. v. Dy. CIT (2025) 123 ITR 507 / 175 taxmann.com 427 (Chennai)(Trib.)

S. 145 : Method of accounting-Change in accounting policy for long-term insurance policies-Deferred recognition of premium-Addition upheld.

The assessee changed its accounting policy by recognising premium received on long-term health and personal accident policies over the duration of the policies instead of in the year of receipt. The Tribunal held that the Assessing Officer was entitled to determine the correct taxable income notwithstanding the accounting treatment adopted and upheld the addition. (AY. 2008-09 to 2014-15).

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