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2024 (2) TMI 1232 - AT - Income TaxRevision u/s 263 - Taxability of unit linked insurance redemption units - AO had re-opened the assessment on the basis that the assessee had claimed accretion amount on surrender of policy - HELD THAT:- Law is well settled that for invoking the provision of section 263, twin conditions are required to be satisfied i.e. that order should be erroneous and prejudicial to the interest of the Revenue. If AO adopts one of the plausible views, in that event, no prejudice would be caused. In the present case, the assessee redeemed units of Bajaj Alliance and claimed it to be capital gain. A specific provision has been inserted in respect of unit linked insurance in section 45 of the Act, making it amenable to capital gain tax. Therefore, looking to the facts of the present case, no prejudice is caused to Revenue. We therefore, set aside the impugned order and restore the findings of AO. The grounds raised by the assessee in this appeal are allowed.
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