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ITAT Mumbai Upholds Reinsurance Deduction and 60% Software Depreciation for SBI General Insurance

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Summary

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  • The ITAT Mumbai has upheld the SBI General Insurance Company's claims for reinsurance deductions and 60% depreciation on software for Assessment Years 2012-13, 2013-14, and 2014-15.
  • The Tribunal dismissed the Revenue's appeals, agreeing with the CIT(A) that the insurer substantially complied with IRDAI regulations regarding reinsurance placements.
  • On software depreciation, the Tribunal ruled that the statutory language does not differentiate between types of software, allowing full depreciation under "Computers including Computer Software."
  • This decision reinforces the interpretation of regulatory compliance in insurance and could influence future assessments in similar cases.

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