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2023 (7) TMI 344 - ITAT HYDERABADClaim of exempt income made for the first time to the rectification application - receipt of survival benefit received from LIC on a single premium policy - CIT(A) said that an exempt income cannot be brought on record by way of a rectification application, because such a claim of the assessee does not alter the total income returned initially - HELD THAT:- Hon’ble Apex Court in the case of NTPC [1996 (12) TMI 7 - SUPREME COURT] held that it is open for the assessee to raise the points of law even before the appellate authorities, when consideration thereof does not necessitate any enquiry into the facts or calling for any fresh evidence. In this case, according to the assessee Form 26AS does not refer to the income received by the assessee towards survival benefit received from LIC on a single premium policy. It is not the case of the Revenue that such a receipt is not exempt income. Only point for consideration of such a plea by the assessee is that the assessee preferred the same by way of letter dated 25/06/2020. Since the plea of the assessee that such a receipt is an exempt income, is purely a question of law, and does not require calling for any fresh evidence, there is no legal impediment for the Ld. CIT(A) to consider the same. With this view of the matter, we are of the considered opinion that interest of justice demands that the plea taken by the assessee through letter dated 25/6/2020 as to the nature of receipt from LIC as survival benefit on a single premium policy, being a pure question of law, requires consideration; lest it would amount that an exempt income is brought to tax. We set aside the impugned order and rest of the issue to the file of the jurisdictional AO to verify whether the nature of the impugned receipt is received towards survival benefit received from LIC on a single premium policy. If it is so, it is an exempt income. The grounds of appeal are accordingly treated as allowed for statistical purpose.
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