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2023 (10) TMI 1227 - AT - Income TaxSurplus on maturity of the policy /prematurely surrendered insurance policy - Income from other sources of capital gain - difference between aggregate surrender value and the purchase value - assessee as contented since the policy was held for more than three years from the date of acquisition/purchase, the capital gain arising from such transaction was in the nature of Long Term Capital Gains. The Appellant was entitled to claim benefit of deduction u/s 54F - HELD THAT:- Appellant has held investment for a period of more than three years. Single premium was paid on 31/03/2008 and surrender value was received after 31/03/2011 during the relevant previous year. In the present case the investment were in the nature of investment in Debt Mutual Fund. According, we hold that the accretion value was in the nature of long term capital gains. Accordingly, the addition made by the Assessing Officer in the hands of the Appellant holding the same to be ‘Income from Other Sources’ is set aside. AO is directed to compute the amount of capital gains tax liability, if any, as per law. AO is also directed to grant the benefit of Section 54F to the Appellant after verifying the claim of the Appellant taking into consideration the Agreement for Sale, dated 09/12/2014 filed by the Appellant.
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