I-T appellate tribunal rules in favour of HDFC Life in Rs 3K cr litigation

HDFC Life Insurance Company on Friday said the Income Tax Appellate Tribunal, Mumbai, has passed an order in favor of the insurer in a suit for assessment years 2017-18 and 2018-19, for an amount worth Rs 3,319.60 crore.

In the regulatory filing, the company said it received the copy of the order along with relevant details on November 9, 2023.

The company added that the tax authorities may appeal the order to the Bombay High Court, hinting at the possibility of further legal proceedings.

Recently, the second largest private sector life insurer had posted a net profit of Rs 376.77 crore during the quarter ended September 30, 2023, up 15 per cent from Rs 326.24 crore in the same period last year.

The Value of New Business (VNB) margin decreased from 27.1 percent in the same period last year to 26.4 percent due to a change in the product mix and an increase in investments.