Case Law Details
Vinayna Veljee Vs ITO (ITAT Ahmedabad)
Kolkata Tribunal in the case of Sandeep Modi v DCITTS-184-ITAT- 2022 (Kol), which has held that on maturity of life insurance policy, where section 10(10D) does not apply, it is only the net income which is chargeable to tax in the hands of the assessee.
ITAT held that we are in agreement with the Ld. Counsel for the assessee that he would be entitled to be taxed on the maturity amount received in terms of CBDT Circular number 7/2003 dated 5-9-2003 on taxability of maturity of policies under section 10(10D) of the Act, as per which only net income is chargeable to tax in the hands of the assessee. Accordingly, in the interest of justice, we set aside the order passed by Ld. CIT(A) to the file of Ld. Assessing Officer for re-computing the taxable amount of maturity amount of LIC received by the assessee in light of the CBDT Circular number 7/2003 dated 5-9-2003 referred to above. The Ld. Assessing Officer is directed to work out the correct taxable amount in the hands of the assessee in terms of CBDT Circular number 7/2003 dated 5-9-2003 referred to above.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This is an appeal filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No. ITBA/NFAC/S/250//2020-21/1031534011(1) vide order dated 16/03/2021 passed for the assessment year 2017-18.
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