TMI Blog2023 (8) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... use 10D of section 10 does not apply on account of applicability of the fourth and fifth proviso thereof. In the present case, in hand, the assessee has paid a premium more than the limit specified under the fourth proviso to section 10(10D) of the Act. This has been further emphasized by amendment to section 2(14)(c) of the Act vide Act No. 13 of 2021 which has specifically stated the investment in unit linked insurance policy as capital asset . From the above observation, we find merit in the submission of the assessee and we hereby hold that the above mentioned policy will come under the purview of capital asset as per section 2(14) of the Act for which the A.O. is directed to tax the accretion on surrender of the said policy under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee s case was reopened u/s. 147 of the Act by issue of notice u/s. 148 of the Act dated 31.03.2021. The assessee has filed its return of income dated 14.04.2021, declaring total income of Rs. 5,52,030/- in response to the notice u/s. 148 of the Act. The assessment order dated 01.03.2022 was passed u/s. 147 of the Act where the Assessing Officer (A.O. for short) determined the total income at Rs. 31,25,215/- by making an addition of Rs. 25,73,185/- as income from other sources u/s. 56 of the Act and disallowance of loss claimed amounting to Rs. 15,15,268/-. 5. The assessee was in appeal before the ld. CIT(A), challenging the notice u/s. 148 of the Act and on the addition/disallowances. 6. The ld. CIT(A) confirmed the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsion benefit as per section 10(23AAB) of the Act along with section 80CCC of the Act. The ld. CIT(A) has also held the same to be taxed under the head income from other sources for the reason that the unit linked insurance plan is both a pension plan and has also an insurance component in it, where the hedging of risk of life and related benefits are both available in the said policy and also for the reason that it is a source of investment. The A.O. and the ld. CIT(A) has treated this as ULIP for which the exemption is available u/s. 10(10D) of the Act. The ld. CIT(A) further held that the surrender proceeds of ULIP are taxable and the same is taxed under the head income from other sources . The assessee s contention that ULIP is a cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility of the fourth and fifth proviso thereof. In the present case, in hand, the assessee has paid a premium more than the limit specified under the fourth proviso to section 10(10D) of the Act. This has been further emphasized by amendment to section 2(14)(c) of the Act vide Act No. 13 of 2021 which has specifically stated the investment in unit linked insurance policy as capital asset . 11. From the above observation, we find merit in the submission of the assessee and we hereby hold that the above mentioned policy will come under the purview of capital asset as per section 2(14) of the Act for which the A.O. is directed to tax the accretion on surrender of the said policy under the head income from capital gains and not as incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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