https://www.taxtmi.com/caselaws?id=450043 The ITAT Delhi held that proceeds from a matured life insurance policy were exempt under Section 10(10D) of the Income Tax Act. The AO had treated the amount as taxable under Section 28(vi), arguing it remained a keyman insurance policy. However, the assessee successfully contended that when the proprietorship concern dissolved in 2008, the policy was transferred to the individual assessee after paying surrender value, changing its character from keyman to ordinary policy. The tribunal ruled that policy assignment leads to conversion and character change, making the maturity proceeds exempt. The addition was deleted and the assessee's appeal was allowed. en-us Wed, 21 Feb 2024 00:00:00 +0530 Sat, 24 Feb 2024 09:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450043 The ITAT Delhi held that proceeds from a matured life insurance policy were exempt under Section 10(10D) of the Income Tax Act. The AO had treated the amount as taxable under Section 28(vi), arguing it remained a keyman insurance policy. However, the assessee successfully contended that when the proprietorship concern dissolved in 2008, the policy was transferred to the individual assessee after paying surrender value, changing its character from keyman to ordinary policy. The tribunal ruled that policy assignment leads to conversion and character change, making the maturity proceeds exempt. The addition was deleted and the assessee's appeal was allowed. Case-Laws Income Tax Wed, 21 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450043