TMI Blog2012 (3) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of Life Insurance Policy and by adding the same while computing the Total Income. Your appellant therefore request your honor to direct learned Income Tax Officer to delete the said addition in toto amounting to ₹ 4,16,200/- 2. On the facts and in the circumstances of the case and in law, the AO erred in levying and calculation U/s 234B and 234C of the Act. 3.The appellants reserve the right to amend, alter, add aforesaid ground of appeals as they may think deem fit by themselves or by their representative. 3 The only issue arising for our consideration and adjudication is whether the maturity value of Life Insurance received by the assessee from American Life Insurance Company taken by the husband of the assessee is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of bonus is exempt from tax. Accordingly, it was contended that the assessee would be covered by the main provisions of Section l0(I0D) of the Income-tax Act and the amount received from the American Life Insurance Company would be exempt from tax. The ld AR has further submitted that the Assessing Officer while denying exemption under Section l0(1OD) referred to the Definition of insurer in Section 2(28BB) of the Income-tax Act and has also referred to the provisions of Section 80C and 88 in this regard. It was submitted that clause (10D) does not refer to the word insurer in the entire clause and it would not be proper to read the word insurer in Section 10(l0D). 5.1 Without prejudice to the above, the ld AR of the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taken from Indian insurance company and therefore, provisions of sec. 10(10D) are not applicable. 7 For the sake of convenience we quote the provisions of 10(10D) 10(10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than; a) any sum received under sub sec. (3) of sec. 80DD or sub sec.(3) of sec. 80DDA; or (b) any sum received under a Keyman insurance policy; or (c ) any sum received under any insurance policy issued on or after the 1st day of April 2003, in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured; Provided that the provisions of this s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sect 3 of the that Act. 8 It is pertinent to note that the term insurer has not been used in sec. 10(10D) and as it is clear that as per provisions of sec. 10(10D) any sum received under Life Insurance Policy including the benefit on such policy is eligible for the deduction. Therefore, it is apparent that there was no intention of the legislature to restrict the benefit of exemption/s 10(10D) only on the insurance policy taken from Indian Insurance Company. 9 The ld AR has pointed out that the term insurer has been used u/s 80C(xii). Therefore, the definition of Insurer, in our opinion, is not relevant in sec 10(10D) where no such condition has been specified; but the language of sec. 10(10D) is clear that any sum received un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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