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2020 (9) TMI 323 - AT - Income TaxExemption u/s 10(10D) - amount received by the assessee on maturity of the Keyman Insurance Policy - As per AO to be assessed under the head salary as against the long term capital gain claimed by the assessee - HELD THAT:- As decided in PRASHANT J. AGARWAL [2016 (9) TMI 1294 - BOMBAY HIGH COURT] any sum received under the assigned Keyman Insurance Policy prior to assessment year 2014–15, would be eligible for exemption under section 10(10D) of the Act, as the amendment in Explanation–1 would apply only from 1st April 2014. The aforesaid observations of the Hon'ble Jurisdictional High Court rather supports the case of the Revenue as in the present case, the Keyman Insurance Policy has matured in November 2014. Assessee received the amount on maturity of Keyman Insurance Policy after coming into effect of the amended Explanation–1 to section 10(10D) of the Act. The decision of the Hon’ble Supreme Court in case of CIT V/s. Vatika Township [2014 (9) TMI 576 - SUPREME COURT] may not be of any help to the assessee as there is no retrospective application of the provision. In this view of the matter, in our considered opinion, the assessee is not eligible to claim exemption under section 10(10D) of the Act on the maturity value of the Keyman Insurance Policy. Legislature in its own wisdom never intended that sum received on maturity of Keyman Insurance Policy is to be assessed under the head income from capital gain. Had it been the case, as the assessee wants us to believe, the legislature would not have restricted the assessability of the amount received under Keyman Insurance Policy to the three heads viz. salary, income from business and profession and income from other sources. In the facts of the present case, undisputedly, the sum received on maturity of Keyman Insurance Policy cannot be assessed either under the head salary or income from business and profession. Thus, the only other head under which it can be assessed is income from other sources as per section 56(2)(iv) of the Act and the Assessing Officer has assessed such income in accordance with the statutory provisions. Grounds raised by the assessee are dismissed.
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