ITAT rules in favor of HDFC Life in Rs. 3,320 crore litigation

The Income Tax Appellate Tribunal (ITAT) in Mumbai ruled in favor of HDFC Life Insurance Company in a litigation concerning the assessment years 2017-18 and 2018-19 amounting to Rs. 3,319.60 crore.

In a regulatory statement, the company reported that it got a copy of the ruling along with necessary information on November 9, 2023.

HDFC Life submitted an intimation in August 2023, stating the details of the pending litigation(s) or dispute(s), in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company emphasised that the Tax Department can appeal the ruling to the Bombay High Court. This suggests that the legal proceedings may continue, pending a potential Tax Department appeal.

At the time of writing, HDFC Life shares were trading 0.76 % higher on the BSE, at 626.15 per share.

Earlier, HDFC Life recorded a 14.9 % increase in net profit to Rs 378 crore in the September quarter of the Financial Year 2023-24 (FY24). The Value of New Business increased by 4 % to Rs. 801 crore, compared to Rs. 770 crore in the same period the previous year. However, the solvency ratio fell marginally from 210 % to 194 % year-on-year.

The Value of New Business margin was reliable at 26.4 %, only slightly lower than the 27.1 % year-on-year. One of the insurer’s accomplishments is a 19 % growth in India’s Embedded Value, which reached Rs. 42,908 crore in comparison to Rs. 36,016 crore the previous year.