The Income Tax Appellate Tribunal, Mumbai, has ruled in favor of HDFC Life Insurance Company in a litigation concerning the assessment years 2017-18 and 2018-19, involving an amount of ₹3,319.60 crore. The company, in a regulatory filing, stated that it received the copy of the order along with relevant details on November 9, 2023.
In August 2023,
HDFC Life filed an intimation, disclosing the details of the pending litigation (s) or dispute(s), in accordance with the requirements of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The company noted that the said order is appealable before the Bombay High Court by the Tax Department. This indicates that the legal proceedings may continue, pending a potential appeal by the Tax Department.
At the time of writing this report, the shares of HDFC Life were trading 0.76% higher at ₹626.15 apiece at the BSE.
In a separate development, HDFC Life reported a 14.9% rise in net profit to Rs 378 crore in the September quarter of the 2023-24 fiscal (FY24). The value of new business (VNB) rose 4% to Rs 801 crore, as against Rs 770 crore in the same period last year. The solvency ratio, however, dipped slightly from 210% to 194% year-on-year (YoY).
The VNB margin stood strong at 26.4%, only marginally lower than the 27.1% YoY. One of the achievements for the insurer is a 19% increase in India Embedded Value, which reached Rs 42,908 crore, compared to Rs 36,016 crore in the previous year.
