ITAT Denies Section 10(10D) Exemption as Assignment Does Not Alter Nature of Keyman Insurance Policy

Harsimron Singh Sandhu Vs DCIT (ITAT Delhi) The ITAT Delhi adjudicated an appeal concerning the taxability of ₹47,50,000 received by the assessee on maturity of a Keyman Insurance Policy and denial of exemption under Section 10(10D) of the Income Tax Act. The assessee, an individual, had filed a return declaring income and claimed the maturity proceeds as exempt. The policy had originally been taken by the employer in 2001–02 and was later assigned to the assessee in 2010–11. The assessee argued that both the purchase and assignment occurred prior to amendments that brought such receipts...