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No Tax on Notional Keyman Policy Value – ITAT Deletes Addition on Unrealised Surrender Value
Case Law Details
- Case Name
- L. H. Sugar Factories Ltd. Vs DCIT (ITAT Lucknow)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13
- Courts
- All ITAT, ITAT Lucknow
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L. H. Sugar Factories Ltd. Vs DCIT (ITAT Lucknow)
Assessee, a sugar manufacturing company, originally filed its return declaring income of ₹15.66 crores, which was assessed u/s 143(3) at ₹19.83 crores. Later, AO reopened the assessment u/s 147 by issuing notice u/s 148 dated 29.03.2016, mainly alleging escapement of income on account of “surrender value” of Keyman Insurance Policies.
In reassessment, AO added ₹73,00,052/- being the revaluation / surrender value of Keyman Insurance Policies which had NOT matured during the year. Assessee argued that this was merely a notional figu...
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