TMI Blog2022 (11) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had not obtained a relief under Section 80CCC (1) of the Act, the redemption amount of the policy prematurely surrendered would not be liable to be taxed. Section 80CCC deals with the deduction in respect of contribution to certain pension funds to provide in Sub section (1) that where any individual assessee has in the previous year paid amount out of his income chargeable to tax in respect of annuity plan of Life Insurance Corporation of India, such amount shall be allowed deduction in computation of total income. Sub section (2) says that any amount standing to the credit of assessee referred in Sub section (1) which was allowed deduction along with the bonus etc. would be liable to tax upon surrender of annuity plan or as a pension received from such plan. Therefore, the condition for taxability of policy surrender value is that the amount invested was claimed as relief under Section 80CCC (1) of the Act which is not the case here. AO wanted to undertake a fishing inquiry in relation to issue, about which he had already solicited information and examined the same. The reassessment powers could not be exercised either for the purpose of reverification or to have a merry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the pension policy of the Bajaj Alliance Private Limited. 3.1 It was thereafter that the notice under Section 148 dated 29.3.2018 was issued to the petitioner seeking to reopen the assessment. The reasons for reassessment was supplied by letter dated 28.9.2018. The petitioner filed his objections on 15.10.2018. The petitioner inter alia stated that he had not made any claim under Section 80CCC (1). The objections of the petitioner came to be disposed of and rejected by the Assessing Officer as per the order dated 16.10.2018. 3.2 In the reasons recorded by the Officer for reopening, it was given out that the petitioner- assessee made investment of Rs.8,10,000/- each dated 28.3.2006, 5.4.2007 and 25.12.2012 and Rs.24,30,000/- on 16.10.2012 totaling Rs.48,60,000/- in the pension policy of the Bajaj Alliance. The assessee surrendered the same, it was stated, for the value of Rs.59,89,740/- on 21.11.2012 much before the maturity date of the policy, which was 28.3.2015. Thus the gain of Rs.11,29,740/- received by the assessee on account of premature of the policy was required to be offered for taxation in the assessment year 2013-14 as per the provisions of Section 80CCC (2), how ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Division Bench of this court in Ami Ashish Shah Vs. Income Tax Officer [(2022) 440 ITR 417 (Gujarat)] in which case the reopening notice was issued on the ground that the amount of bonus received by the assessee upon premature surrender of the pension plan was claimed exempt under Section 10 (10D) of the Act, was actually not exempted under Section 80CCC (2), however the reopening notice issued after four year was held to be unjustified since any fresh tangible material has not come into possession of the Assessing Officer as held by the court. Learned advocate for the petitioner relied on decision also in Swati Malove Divetia Vs. Income Tax Officer [(2018) 98 taxmann.com 447] by highlighting that in pre notice queries, the Assessing Officer having asked the assessee the source of cash deposits and assessee having disclosed them, it was not open for the Assessing Officer to subsequently reopen the assessment. Reliance was placed on decision of this court in Principal Commissioner of Income Tax Vs. Manzil Dineshkumar Shah [(406) ITR 326] to submit that fishing inquiry was not permissible and another decision in Krupesh Ghanshyam Thakkar Vs. Deputy Commissioner of Income Tax being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details by letters dated 18.12.2017 and 1.1.2018. 5.1 The assessee supplied the following details during regular assessment proceedings. (i) A detail chart of premium paid and redemption amount received from the insurance company to show that the assessee paid pension amount from 2006 to 2012 totaling to Rs.48,60,000/- and premature redemption amount was Rs.59,89,740/-. (ii) Ledger copy of Bajaj Alliance Private Limited was submitted which mentioned the following details. (a) Accounting year 2005- 06- Rs.8,10,000/- from Piyush Ambalal Gandhi. (b) Accounting year 2007-08- Rs.8,10,000/- from Jasumatiben A. Gandhi. (c) Accounting year 2012-13- Rs.32,40,000/- from Piyushkumar A. Gandhi. (iii) Entries of pages from bank Development Finance Corporation Accounts of Housing. (iv) Redemption paper from Bajaj Alliance Private Limited of Rs.59,89,740/- date 23.11.2012. (v) Copy of the bank account of the HDFC and statement of Piyush Ambalal Gandhi. 5.2 In response to further queries raised on 11.12.2017, the assessee filed computation and acknowledgement sheet for all the assessment years to show that he had not claimed deduction under Section 80CCC (1) of the Act for inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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