Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 85 - AT - Income TaxAddition on account of surplus from sale of ULIP – Assessee purchased policy that was a unit linked insurance policy – In these kind of policy small portion of the investment goes towards providing the life cover and the residual portion is invested in a stocks or bonds - Assessee claims that surplus amount receive on maturity is exempt u/s 10(10D) - AO treat the entire receipts as income under head income from other sources – Held that:- As major portion is invested in mutual funds therefore, surplus on maturity of the policy should be treated as capital gain. AO has directed to take the sale consideration of units as the amount received on account of maturity of the policy and the cost of investment as the amount invested by assessee during the span of years and accordingly work out the long term capital gain & tax. Therefore, appeal partly allowed.
|