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2022 (8) TMI 519 - AT - Income TaxAddition made to the total income while processing assessment u/s 143(1)(a) - applicability of provisions of sec. 10(10D) - assessee surrendered insurance policy and received surrendered value - assessee surrendered insurance policy and received surrendered value - A.R submitted that the surrender value of amount received by the assessee should not have been taxed in the hands of the assessee - HELD THAT:- As the assessee has not earned any income on surrender of insurance policy. On the contrary, the assessee has only incurred loss - However, it is required to be examined as to whether the assessee has claimed deduction u/s 80C of the Act in respect of premium paid on this insurance product. If the assessee has not claimed deduction u/s 80C of the Act in respect of premium amount paid on this insurance product, then the above said loss should be treated as Capital loss and nothing should be brought to tax, since it supports the stand of the assessee that he has treated these payments as his investment. On the contrary, if the assessee has claimed deduction of the premium amount paid on this insurance product, then the AO is required to deal with the surrender value in accordance with law. Since this matter requires verification, we set aside the order passed by Ld CIT(A) and restore the same to the file of the AO for examining this issue - Appeal filed by the assessee is treated as allowed for statistical purposes.
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