{"id":63846,"date":"2026-08-05T17:22:23","date_gmt":"2026-08-05T11:52:23","guid":{"rendered":"https:\/\/itatonline.org\/digest\/royal-sundaram-general-insurance-co-ltd-v-dy-cit-2025-123-itr-507-175-taxmann-com-427-chennaitrib-2\/"},"modified":"2026-08-05T17:22:23","modified_gmt":"2026-08-05T11:52:23","slug":"royal-sundaram-general-insurance-co-ltd-v-dy-cit-2025-123-itr-507-175-taxmann-com-427-chennaitrib-2","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/royal-sundaram-general-insurance-co-ltd-v-dy-cit-2025-123-itr-507-175-taxmann-com-427-chennaitrib-2\/","title":{"rendered":"Royal Sundaram General Insurance Co. Ltd. v. Dy. CIT (2025) 123 ITR 507 \/ 175 taxmann.com 427 (Chennai)(Trib.)"},"content":{"rendered":"<p>The assessee paid amounts to motor vehicle dealers under agreements for sale of insurance policies. The Tribunal held that invoices, confirmations and collection of premium by the dealers established that genuine services had been rendered. Accordingly, the disallowance was deleted, leaving it open to the Revenue to take appropriate action if warranted after completion of GST proceedings. The Tribunal held that provisions for &#8220;incurred but not reported&#8221; (IBNR) and &#8220;incurred but not enough reported&#8221; (IBNER) claims, computed in accordance with IRDA Regulations and actuarial principles, represented substantially ascertainable liabilities and not contingent liabilities. The deduction under section 37(1) was therefore allowable. (AY. 2008-09 to 2014-15).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1): Business expenditure-Commission to motor vehicle dealers-Genuine business services established-Disallowance deleted-IBNR and IBNER provisions-Ascertained liabilities based on actuarial valuation-Deduction allowable.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63846","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gBM","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63846"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63846\/revisions"}],"predecessor-version":[{"id":63847,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63846\/revisions\/63847"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}